States, FCT record N5.1trn internally generated revenue in three years



Uba Group

The internally generated revenue of the 36 states of the federation and the Federal Capital Territory in three years (2019-2021) stood at about N5.1 trillion, according to figures made available by the National Bureau of Statistics at the weekend.

Analysis of the revenue generated locally by the sub-nationals in the review period suggested that growth was recorded in three years, especially between 2020 and 2021.

Lagos State was the most prosperous state consistently for the three years period, accruing about N2.06 trillion, which accounted for 40.4 percent of the total IGR achieved by the sub-nationals in the period. Rivers State gathered about N410.14 billion, coming at a distance after Lagos.

Breakdown showed that IGR at the State level for 2019 stood at N1.64 trillion with a 64.65 percent share of tax revenue. The revenue declined by 4.65 percent in 2020 when the IGR was N1.56trillion. However, the proportion of tax revenue in 2020 rose to 66.16 percent. The total IGR in 2021 stood at N1.90trillion, indicating a growth rate of 21.54 percent over 2020 revenue collections.

On state profile analysis, Lagos State recorded the highest IGR in 2019 with N646.61billion, followed by Rivers with N169.60 billion. Again, in 2020, Lagos revenue stood top with N659.99 billion, followed by Rivers with N117.19 billion. Furthermore, Lagos and FCT recorded the highest collections in 2021 with N753.46 billion and N131.92 billion respectively.

Abia State generated about N51billion from IGR in the review period with revenue in 2021 being the highest. The State collected N15.5 billion in 2019 and grew it to N15.92 billion in 2020. IGR in the state rose to N19.58 billion in 2021. Adamawa’s IGR in three years stood at N31.04 billion, recording a significant growth year on year in 2021 at N13.01 billion as against N8.33 billion in 2020.

The government of Akwa Ibom raised N97.6 billion as IGR in the period with 2019 being its best year. IGR dropped from N35.5 billion in 2019 to about N31.4 billion in 2021. Anambra’s IGR in three years stood at N85.3 billion with the biggest record achieved in 2021 (N30.92 billion). The State grew IGR steadily in three years, from N26.37 billion in 2019 to N28.01 billion in 2020 and N31.4 billion in 2021.

Delta ranked among states with high IGR with about N204.61 billion generated in three years.

The state achieved a growth of 34.3 percent year on year in 2021, moving from N59.73 billion in 2020 to about N80.2 billion in 2021.

However, IGR recorded a marginal drop of 7.65 percent YoY, from N64.68 billion in 2019 to N59.73 billion in 2020.

Edo State raked in about N105.68 billion from taxes and other incomes which made up its total IGR between 2019 and 2021. Revenue dropped by 20.5 percent in 2019, from N35.23 billion to N28.02 billion in 2020. It however grew by 51.43 percent to N42.43 billion in 2021 from N28.02 billion in 2020.

“On state profile analysis, Lagos State recorded the highest IGR in 2019 with N646.61billion, followed by Rivers with N169.60 billion”

A report by BudgIT had revealed that Lagos, Rivers, and Anambra are three out of the 36 states of the Federation that can meet their operating expense obligations with a combination of their internally generated revenue and value added tax.

As contained in the 2021 ‘State of States’ report released by BudgIT, only Lagos, Rivers, and Anambra states appeared at the top of the ‘Index A’ ranking which looks at the ability of states to meet their operating expenses obligations with only the sum of their internally generated revenue and VAT received.

States at the bottom of the index ranking include Jigawa, Delta, Benue, Taraba and Bayelsa respectively.

The report showed that all 36 states saw a 3.43 per cent decline in their 2020 IGRs (N1.21tn) from (N1.26tn) in 2019.

It said that 18 states saw a decline in their year-on-year revenues, while the remaining 18 states grew their revenues in some cases by as high as 87.02 per cent.

On subnational debt outlook, the report shows that total debt burden of the 36 states increased from N5.39tn in 2019 to N5.86tn in 2020, with Lagos, Kaduna, Edo, Cross River and Bauchi topping the list of states with highest debt burden.


The increase in debt burden according to the report, was driven largely by exchange rate volatility which saw the value of the naira jump from N305.9/$1 in 2019 to N380/$1 as at December 31st 2020.

According to BudgIT, only seven states in Nigeria have functioning Treasury Single Accounts, and about 24 states and 27 states respectively have introduced ‘biometric use in payroll management’ and ‘bank verification number use in payroll management’.

“Based on each state’s 2020 revenue, five states prioritized investment in infrastructure by spending more on capital expenditure than operating expenses.

“The states are Ebonyi, Rivers, Anambra and Cross River States in the south and Kaduna state in the north.

“Furthermore, only 16 states published details of their contracts online for public scrutiny, while 20 states were yet to do so at the time of the assessment.

The report shows the need for all states to work hard to build economic prosperity considering the global push to transition away from fossil fuels like crude oil which is a key source of federally distributed revenue.