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 of Nigeria and the Federal Capital Territory generated a total of N5.15tn in internally generated revenue (IGR), according to the National Bureau of Statistics (NBS). The report, published on Thursday, revealed that the majority of this revenue came from taxes, with Pay As You Earn (PAYE) tax being the dominant source.
PAYE, which is personal income tax deducted directly from the wages and salaries of employees in the formal sector, generated N2.64tn, accounting for 69.51% of total tax revenue and 51.3% of all IGR collected by states and the FCT. This was followed by capital gains tax, which totaled N12.40bn. The report showed that total IGR increased by 40.93% from N3.65tn in 2024, indicating a significant growth in subnational government revenue.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
