States garner N1.93tr IGR – Yobe, Taraba, Kebbi in bottom 3
By Jeph Ajobaju, Chief Copy Editor
Internally generated revenue (IGR) garnered by the 36 states rose to N1.93 trillion in 2022, with Lagos and Rivers occupying the top three positions along with the Federal Capital Territory (FCT).
Data from the National Bureau of Statistics (NBS) shows states grew IGR 1.57 per cent from N1.89 trillion made in 2021.
Top 5 generators
Lagos, as usual, led the top five 2022 IGR leaderboard which shows:
- Lagos – N651.15 billion
- Rivers – N172.82 billion
- FCT – N124.37 billion
- Ogun – N120.58 billion
- Delta – N85.90 billion
Bottom 5 generators
The bottom five states were
- Katsina – N13.06 billion
- Ebonyi – N12.43 billion
- Yobe – N10.46 billion
- Taraba – N10.24 billion
- Kebbi – N9.15 billion
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Revenue sources
The NBS explained the 2022 IGR figures have two major revenue sources – taxes and revenues of ministries, departments and agencies (MDAs), according to The PUNCH.
The tax sub-categories included Pay As Your Earn (PAYE), direct assessment, road taxes, stamp duties, capital gain tax, withholding taxes, other taxes, and council revenue.
“PAYE was the most contributing revenue source during the year, recorded 67.62 per cent share to the total tax generated revenues nationwide, the report said.
“While capital gains tax was the least in the year under review with 0.24 per cent share to total tax revenue.
“Oyo, Lagos, and Jigawa states were the three leading states with the highest LGA revenue reported during the year. The states recorded N11.83bn, N11.51bn, and N8.70bn respectively.”
Other breakdowns
According to the NBS, other tax revenue sources of states in 2022 were as follows:
- PAYE – N994.41 billion
- Direct assessment – N52.35 billion
- Road – N24.57 billion
- Stamp duties – N27.13 billion
- Capital gain – N3.52 billion
- Withholding tax – N139.91 billion
- Other taxes – N179.95 billion
- Council revenue – N48.71 billion
- MDAs – N455.07 billion
Heavy reliance on federal treasury
Despite the growth in 2022 IGR, states relied heavily, as in other years, on allocations from the federal treasury.
Total Federation Account Allocation Committee (FAAC) allocation to states, excluding the FCT, was N3.16 trillion, 63.73 per cent above total states’ IGR, and states borrowed N870 billion domestically to augment revenue.
Only 11 states, including the FCT, attracted foreign investment.