Nigeria’s internally generated revenue (IGR) recorded a remarkable 49.7 percent growth in 2024, reaching ₦3.63 trillion, up from ₦2.43 trillion in 2023, according to the latest report by the National Bureau of Statistics (NBS). The report highlights significant progress in subnational revenue generation, led by Lagos, Rivers, and the Federal Capital Territory (FCT). Lagos Maintains Its Lead as Nigeria’s Economic Powerhouse Lagos State retained its position as the nation’s economic hub, generating an impressive ₦1.26 trillion — over one-third of the total IGR nationwide. The figure underscores Lagos’ dominance in commerce, taxation efficiency, and diversified economic activities. Following closely, Rivers State contributed ₦317.30 billion, reflecting steady growth in industrial and oil-related sectors, while the Federal Capital Territory (FCT) posted ₦282.36 billion, showing stronger fiscal performance compared to previous years. Together, these three regions accounted for nearly 52 percent of Nigeria’s total IGR in 2024. Understanding the IGR Composition According to the NBS, the ₦3.63 trillion IGR is derived mainly from two broad sources: tax revenues and revenue from Ministries, Departments, and Agencies (MDAs). Meanwhile, non-tax revenue — including service charges, licenses, and permits collected by MDAs — made up the remaining 26.65 percent. Several states reported improved collections due to better digitization and automation of payment systems. States’ Performance and Regional Disparities While Lagos, Rivers, and the FCT led the pack, a few other states also showed commendable performance. Enugu State joined the top five with ₦180.50 billion, surpassing some oil-producing states such as Edo and Delta. On the other end of the spectrum, Yobe (₦11.08 billion), Ebonyi (₦13.18 billion), and Kebbi (₦16.97 billion) ranked among the lowest-performing states, underscoring the wide fiscal gap between Nigeria’s wealthiest and least productive regions. The report further revealed that southern states generally outperform the northern states in internal revenue generation, due largely to stronger business environments, diversified economies, and more developed tax infrastructures. Key Drivers Behind the 2024 IGR Growth Experts attribute the surge in IGR to a combination of reforms and digitization initiatives rolled out across various states. Some of the driving factors include: Despite these gains, analysts warn that inflation and higher commodity prices may have inflated nominal revenue growth figures. Challenges and Outlook While Nigeria’s IGR performance in 2024 marks substantial progress, disparities among states remain a major concern. Heavy reliance on federal allocations still defines the fiscal structure of many northern states. To ensure sustainable growth, stakeholders recommend: As Nigeria’s fiscal reforms continue to evolve, the steady rise in internally generated revenue offers a positive signal for subnational economic resilience and financial independence.
