Nigeria is a country blessed with diverse resources and a growing economy, which has led to various states within the nation generating substantial revenue. In this article, we will take a closer look at the Ten Nigerian States with the highest IGR, exploring their populations, the taxes, and the revenues generated from ministries, departments, and agencies (MDAs) with the data gathered from the National Bureau of Statistics and Demographic Statistics Bulletin of 2022.
However, there have been different trends in the last three years. In 2019, the State’s internally generated revenue amounted to N1.64 trillion, with taxes contributing 64.65% to the total. The following year, in 2020, revenue decreased by 4.65% to N1.56 trillion, but the share of tax revenue rose to 66.16%.
However, in 2021, there was a remarkable resurgence as the State’s total internally generated revenue reached N1.90 trillion, showcasing a substantial 21.54% growth over the previous year’s collections. The increasing trends also continued in 2022 with the total IGR which amounted to N1.93 trillion naira.
| States | Total IGR Generated in (N Billion) | National Ranking | Geo-political Region |
| Lagos | 651,145,633,085 | 1st | South-West |
| Rivers State | 172,823,232,535 | 2nd | South-South |
| FCT Abuja | 124,366,744,519 | 3rd | North Central |
| Ogun State | 120,584,157,140 | 4th | South-West |
| Delta State | 85,901,607,747 | 5th | South-South |
| Oyo State | 62,246,150,460 | 6th | South-West |
| Kaduna State | 58,094,591,085 | 7th | North-West |
| Edo State | 47,458,128,071 | 8th | South-South |
| Kano State | 42,509,911,699 | 9th | North-West |
| Kwara State | 35,756,949,370 | 10th | North Central |
Regional Distribution of Top 10 States by IGR based on 2022 figures
South East – 0
South-South – 3
South-West – 3
North East – 0
North Central – 2
North West – 2
1. Lagos State – N654 Billion Naira
Lagos State is located in South-western Nigeria with over twelve million residents (12,772, 884) and stands as the second most populous state in Nigeria based on official figures. As the financial capital of Nigeria, Lagos state remains 1st for IGR.
The state generated an estimated 651.1 billion naira in internal revenue. This is almost equal to the combined total (685 billion naira) generated by the remaining 9 states in the top 10 list.
The substantial amount of revenue generated by Lagos state came from two major sources: government taxes and revenue from government agencies (MDAs). Lagos State collected 80.6 percent of its revenue (524 billion Naira) from government taxes, while MDAs contributed 19.4 per cent (126 billion Naira) to the treasury.
Though the state recorded the highest internal revenue in 2022 in Nigeria, the 654 billion naira represents a 13.6% decline compared to 2021 figures (753 billion). With the highest IGR coming from Lagos since 2019.
It is without question that Lagos state is the commercial center of Nigeria, home to two major ports; Lagos Port Complex and Tin Can Island Port Complex which allows swift importation and exportation of goods services.
Technologically, Lagos also has a commercial technological hub in Yaba that is often referred to as Yabacon Valley and is also the headquarters of financial and other institutions.
2. Rivers State – N172 Billion Naira
In 2022, Rivers State located in South-South Nigeria stood out as the second-highest Internal Generated Revenue (IGR) contributor in the country with a total revenue of 172 billion naira which represents a 28.7 percent increment from the 2021 record of 123 billion naira.
Based on the data reviewed on revenue generation by Rivers stat, 88.8 percent was sourced primarily from government taxes, which amounted to 153 billion naira, while the remaining 11.2 per cent which amounted to 19.2 billion naira came from various Ministries, Departments, and Agencies (MDAs).
River state is the seventh most populous state with about 7.5 million people based on the most recent data by NBS. The state is well known for its oil and gas sector which is ranked third producing state in Nigeria and also one of the states that receives annual derivation funds; in 2022, it received N169.79 billion naira.
Lastly, the Port Harcourt port which fosters trade and revenue through imports and exports has also helped to generate taxes that can increase the IGR.
3. FCT Abuja – N131 Billion Naira
Abuja, the Federal Capital Territory (FCT) located in North Central Nigeria serves as Nigeria’s capital and boasts the third-highest Internal Generated Revenue (IGR) in 2022, which amounts to about 124 billion naira.
However, despite its third position it witnessed a 5.7% decline from the previous year which had a total of 131 billion naira. Abuja FCT is also one of the country’s smallest populations, ranking 35th with just 2.7 million residents but being the capital of the country, it is considered as a strategic point for different companies and businesses operating in different parts of the country.
This strategic advantage gave it an economic edge over other states in the federation. Unlike other states that rely on funds from various government agencies, and government taxes, the FCT primarily derives its revenue from government taxes.
4. Ogun State – N120 Billion Naira
In 2022, Ogun State located in South West Nigeria ranked fourth in terms of Internal Generated Revenue (IGR), with official figures totalling about 120 billion naira. This represents an increase of about 16.4 percent increment from the 2021 figure (about 100 billion naira).
Unlike most of the states where tax revenues generated a higher percentage of the revenue, Ogun state is one of the two states in which various Ministries, Departments, and Agencies (MDAs) contributed more than the government taxes. The MDAs contributed 55.8 percent which represented 67 billion naira and the government taxes contributed 44.2 percent which represented about 53 billion naira.
Ogun State shares its borders with Lagos State and has its administrative hub located in Abeokuta. The influence of Lagos state must have contributed to the economy of the state due to the seamless interstate transaction that has occurred over the years.
5. Delta State – 85 Billion Naira
In 2022, Delta State located in South-south Nigeria and the 16th most populous state in Nigeria with 5.3 million residents, made its mark as the fifth-highest revenue earner with 85 billion naira.
The state generated a whopping 71 billion naira from taxes which represented 83.7 per cent, and an additional 14.4 billion which represented 16.2 per cent from its various ministries, departments, and agencies. Delta State’s notable claim to fame is its substantial contribution to the oil and gas sector.
The state received an additional N296.63 billion naira which represented 31 per cent of the total revenue from the oil derivation account and the highest in 2022. This must have become evident as the state’s total revenue for 2022 increased by 6.6 percent which represented 85,901,607,747 (85 billion naira).
6. Oyo State 62 Billion Naira
In 2022, Oyo State located in South-west Nigeria ranked sixth in terms of its Internal Generated Revenue (IGR), accumulating an estimated 62 billion naira, which is a 16.3 increment from the 2021 IGR (52 billion naira).
Government taxes contributed to 72.8 percent which represented 45.3 billion naira and various Ministries, Departments, and Agencies (MDAs) chipped in 27.1 per cent which represented 16.9 billion naira.
Oyo state has an estimated population of about 7,4 million people based on the latest official data, securing its position as the sixth most populous state in Nigeria.
7. Kaduna State – 58 Billion Naira
In 2022, Kaduna State located in North West Nigeria achieved the seventh-highest Internally Generated Revenue (IGR) with 58 billion Naira, which is a 9 per cent increase of the 2021 IGR (52,859,708,980).
Kaduna state surpassed Kano to become the state with the highest IGR amongst the 19 northern states (excluding Abuja FCT. This remarkable financial success was fueled in part by the state’s substantial population of 8,105,251, which ranks it as the fourth most populous state in the country.
About 59.4 per cent of the revenue was generated from government taxes which represented about 34.5 billion, while Ministries, Departments, and Agencies (MDAs) generated an additional 40.5 which represented 23,6 billion naira.
8. Edo State 47 Billion Naira
In 2022, Edo State located in South-south Nigeria achieved the eighth-highest Internal Generated Revenue (IGR) in the country. With a population of 4,461,137, it ranked as the twenty-second most populous state in Nigeria. Based on figures published, the state generated a total revenue of 47,458,128,071 which is a 10.6 increase from the previous year.
About 69.5 revenue was from government taxes which resulted in 32.96 billion Naira while 30.5 per cent of MDAs resulted in 14,49 billion Naira. However, it is worth noting that the state is also a beneficiary of the oil derivative funds and it received N37.49 billion in 2022.
9. Kano State 47 Billion Naira
In 2022, Kano State located in North-West Nigeria secured the ninth position in terms of internally generated revenue with 42,51 billion naira) which is a 4.9 increase from the previous year of 40 billion naira.
The government’s taxes contributed to 71 per cent of the revenue which is 30.18 billion naira and revenue from government agencies (MDAs) contributed 29 per cent which is 12,32 billion naira.
Kano State, with a population of over 14 million residents, is the most densely populated state in the country. With the population, Kano state should have been at the forefront just like Lagos but it turned out that population is not the only key factor in generating IGR.
10. Kwara State 35 Billion Naira
In 2022, under the leadership of Governor Abdulrasaq Abdulrahman, Kwara State located in North-central achieved a remarkable feat by securing the tenth-highest internally generated revenue (IGR) in Nigeria.
The state’s total IGR for the year reached an impressive 35 billion naira which is a 25 per cent increase from the previous IGR of 29.96 billion naira. In the IGR, the government tax contributed to 40.6 percent of the revenue which represented 14,51 billion naira. Ministries, Departments, and Agencies (MDAs) generated 59.6 percent which represented 21.24 billion naira.
This makes Kwara State one of the two states where their MDAs generated more revenue than the government taxes. Despite its financial success, the state is one of the lowest populous states with 3,259,613 people, earning it the thirty-third position in the ranking of the most populous states in Nigeria.
Nigeria’s top-performing states in Internally Generated Revenue (IGR) for 2022 showcase various economic trends. Lagos, the commercial hub, led with 651.1 billion Naira, followed by Rivers and FCT Abuja.
Notably, Lagos’ and Abuja’s IGR declined, but the overall national trend was positive, reaching 1.93 trillion Naira. Oil-rich Delta State capitalized on its resources, while populous Kaduna and Kano demonstrated economic resilience. Ogun, Oyo, Edo, and Kwara also contributed significantly, emphasizing diverse revenue sources.
These figures provide insights into Nigeria’s economic dynamics and regional financial strengths. However, four out of the six geo-political zones made it to the top ten. Southeast and Northcentral had no representation in the top list.
