Lagos, Rivers, and the Federal Capital Territory (FCT) earned the greatest domestic income in 2022.
This is supported by the most current Internally Generated Revenue report from the National Bureau of Statistics (NBS), which was published earlier today, October 23, 2023.
These are the key accomplishments of the financial performance of several states in Nigeria throughout the year, as reported by the National Bureau of Statistics:
Top Performers: The states with the highest IGR were Lagos, Rivers, and the Federal Capital Territory (FCT). Impressive sums of 651,145,633,085.30, 172,823,232,535.44, and 124,366,774,519.25 were earned by each of them.
States that underperformed: On the other end of the scale, Kebbi, Taraba, and Yobe had the worst performance raising money. Only 9,146,249,907.83, 10,238,110,125.95, and 10,456,776,796.18 were successfully collected by them.
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Pay-as-you-earn (PAYE) taxes contributed a sizable 67.62% of the total tax revenues earned nationwide, making them the primary source of income for the year.
Minor Revenue Source: In contrast, capital gains tax had a far lower impact, contributing only 0.24 percent of all tax revenue.
Leaders in Local Government Revenue: Oyo, Lagos, and Jigawa emerged as the top three states in terms of local government area (LGA) revenue. Astonishing totals of 11,832,437,020.33, 11,505,586,283.35, and 8,700,993,591.78, respectively, were recorded.
The NBS research also stated that in 2022, taxes and revenue from Ministries, Departments, and Agencies (MDAs) accounted for the majority of Internally Generated Revenue (IGR).
There were various subcategories under the area of taxes, including PAYE, Direct Assessment, Road Taxes, Stamp Duties, Capital Gain Tax, Withholding Taxes, Other Taxes, and revenue from Local Government Areas (LGAs).
The 36 states of Nigeria as well as the Federal Capital Territory (FCT) were able to produce IGR totaling 1,925,612,626,650.76 in 2022. Comparing this to the 1,895,786,762,263.80 created in the year prior, 2021, showed a minor growth of 1.57%.
Simply expressed, taxes of all kinds and the income made by various government departments and organisations made up the revenue for 2022. In comparison to the prior year, the overall revenue collected from all states and the FCT grew somewhat.
Pay As You Earn (PAYE), a particular kind of personal income tax in Nigeria, should be noted. It entails the automatic withholding of taxes from employees’ pay and salaries in the formal sector.
In other words, if you work for a business or organisation, your employer is required by law to deduct PAYE taxes from a percentage of your pay.
