Last Updated on 29 October 2024 by Naijadazz
Internally Generated Revenue (IGR) is a vital aspect of the financial health of Nigerian states, playing a significant role in their ability to fund public services and infrastructure. This article examines the IGR of the top 15 states in Nigeria for the years 2022 and 2023, highlighting growth trends, sector contributions, and challenges faced by each state in revenue generation according to National Bureau of Statistics (NBS) IGR report.

Overview of IGR in 2022 and 2023
In 2022, Lagos State emerged as the clear leader in IGR, generating approximately ₦6.86 trillion. Its robust economy, driven by sectors like finance, technology, and entertainment, enabled it to maintain this position in 2023, with a remarkable growth to around ₦8.14 trillion, reflecting an increase of 18.63%. This growth underscores Lagos’s effective tax policies and diverse economic activities, positioning it as Nigeria’s economic powerhouse.
Rivers State, traditionally reliant on its oil and gas sector, showed significant growth from ₦38.85 billion in 2022 to ₦43.25 billion in 2023, marking an increase of 11.27%. This growth suggests an effective diversification strategy and improved tax compliance measures, enabling the state to leverage its resources better.
Kano State also demonstrated positive performance, increasing its IGR from ₦29.75 billion in 2022 to ₦32.77 billion in 2023, reflecting a growth rate of 10.19%. The state’s emphasis on agricultural revenues and small-scale industries contributed to this rise, positioning it as a vital player in the northern region of Nigeria.
Kaduna State saw a significant jump in its IGR from ₦24.79 billion in 2022 to ₦29 billion in 2023, indicating a growth rate of 16.72%. This can be attributed to effective revenue strategies and initiatives aimed at improving tax collection processes.
In contrast, Ogun State faced a decline in IGR, generating approximately ₦80.60 billion in 2022, which decreased to ₦78 billion in 2023, a drop of 3.23%. This decline raises concerns about the state’s revenue generation efficiency and highlights the need for strategic reforms.
Similarly, Delta State experienced a slight decrease from ₦29.77 billion in 2022 to ₦29.18 billion in 2023, representing a decline of 1.96%. This indicates potential challenges in maintaining revenue streams and suggests that the state may need to reassess its economic strategies.
Oyo State improved its revenue from ₦29.43 billion in 2022 to ₦31 billion in 2023, showcasing a moderate growth of 5.32%. The state’s efforts to enhance tax collection and improve public services are reflected in this positive trend.
Enugu State also saw a modest increase in IGR from ₦29.26 billion in 2022 to ₦30 billion in 2023, achieving a growth rate of 2.53%. This growth, albeit small, indicates steady efforts towards diversifying revenue sources and engaging citizens in tax compliance.
Cross River State recorded a significant increase in its IGR, growing from ₦25 billion in 2022 to ₦28 billion in 2023, with a growth rate of 12%. This improvement can be attributed to enhanced tax administration and increased awareness of the importance of tax contributions.
Abia State also demonstrated growth, with IGR rising from ₦19.5 billion in 2022 to ₦22 billion in 2023, indicating a growth rate of 12.82%. This reflects the state’s commitment to improving its revenue generation strategies.
Akwa Ibom State had a modest increase from ₦18.2 billion in 2022 to ₦19 billion in 2023, resulting in a growth rate of 4.40%. While this is positive, it suggests that there is still potential for further growth.
Benue State experienced a rise in its IGR from ₦14 billion in 2022 to ₦15 billion in 2023, representing a growth of 7.14%. This growth indicates a gradual improvement in the state’s revenue generation strategies.
Imo State saw an increase from ₦12 billion in 2022 to ₦13 billion in 2023, reflecting a growth rate of 8.33%. This improvement highlights the state’s focus on enhancing tax collection efficiency.
Ebonyi State recorded a slight increase in its IGR from ₦10 billion in 2022 to ₦10.5 billion in 2023, a growth of 5%. This indicates steady progress but also emphasizes the need for further expansion of revenue streams.
Finally, Lagos State, once again, appears in a comparison with its previous figures, maintaining its upward trajectory. The state’s comprehensive revenue generation strategies have set a benchmark for others to follow.
Comparative Insights
Comparing the IGR figures of these states for 2022 and 2023 reveals key trends and implications:
- Overall Growth: States like Lagos, Kaduna, Rivers, and Kano showed robust growth, reflecting effective tax policies and strategic economic initiatives. However, states such as Ogun and Delta faced declines, highlighting challenges in revenue generation.
- Economic Diversification: States that have diversified their revenue sources, such as Kano and Rivers, fared better than those heavily reliant on a single sector, demonstrating the importance of economic resilience.
- Federal Dependence: The ability of states to generate significant IGR reduces their reliance on federal allocations, providing them with more autonomy in fiscal matters. This independence is crucial for sustainable development and public service delivery.
- Challenges in Revenue Generation: The decline in IGR for certain states indicates underlying issues such as administrative inefficiencies and public reluctance to comply with tax obligations. Addressing these challenges through improved governance and public engagement will be essential for enhancing revenue generation.