States generate N5.15tn as PAYE dominates tax revenue
Nigerian states and the FCT generated N5.15tn in IGR in 2025, with Pay As You Earn (PAYE) tax from workers’ salaries being the biggest source. Read More: https://punchng.com/states-generate-n5-15tn-as-paye-dominates-tax-revenue/
In 2025, the 36 states and the Federal Capital Territory (FCT) generated N5.15tn in internally generated revenue (IGR), with taxes deducted from workers' salaries being the primary source of tax revenue, according to the National Bureau of Statistics (NBS). IGR rose by 40.93% from N3.65tn in 2024, indicating a significant increase in subnational government revenue.
Tax revenue accounted for 73.64% of total IGR, with Pay As You Earn (PAYE) tax being the dominant component, generating N2.64tn, or 69.51% of all tax revenue. Lagos state generated the highest IGR at N1.77tn, accounting for about 34% of the national total.
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