State governments across Nigeria and the Federal Capital Territory recorded a substantial increase in internally generated revenue in 2025, with their combined collections rising to ₦5.15 trillion, fresh data from the National Bureau of Statistics have shown.
The figure marks a 40.93 per cent increase over the ₦3.65 trillion generated in 2024, representing an additional ₦1.5 trillion in revenue collected internally by the country’s 36 states and the FCT during the year.
The National Bureau of Statistics (NBS), in its latest Internally Generated Revenue report, said the increase reflected a significant rise in the revenue-generating capacity of sub-national governments.
According to the bureau, “the total Internally Generated Revenue (IGR) collected by the 36 States and the FCT stood at ₦5.15 trillion in 2025, compared to ₦3.65 trillion in 2024.”
The statistics agency further stated that “this represents a year-on-year increase of 40.93 per cent.”
The strong growth comes against the backdrop of continuing efforts by state governments to strengthen domestic revenue mobilisation, improve tax administration and reduce their reliance on allocations from the Federation Account.
The NBS attributed the increase to several factors, including improvements in tax administration, the expansion of digital revenue collection channels and increased economic activity across the states.
For state governments, the rise in internally generated revenue is particularly significant as they face growing demands for public spending. Higher internally generated receipts can provide additional resources for infrastructure development, healthcare, education, salaries, social programmes and other government responsibilities.
The latest figures also highlight the increasing importance of domestic revenue mobilisation to the finances of Nigeria’s sub-national governments. While federal allocations remain an important source of funding for many states, stronger IGR gives governments greater scope to finance programmes from resources generated within their jurisdictions.
The ₦5.15 trillion recorded in 2025 represents a marked improvement from the previous year, when the combined IGR of the states and the FCT stood at ₦3.65 trillion.
However, the national aggregate masks differences in revenue performance among individual states. The NBS dataset provides a state-by-state breakdown of collections, offering a detailed picture of how much each sub-national government generated during the year.
The figures are expected to remain closely watched as states continue to explore measures aimed at expanding their tax bases, improving compliance and making revenue collection more efficient.
With governments under pressure to provide infrastructure and essential public services while managing their finances, internally generated revenue is likely to remain a key component of state-level fiscal planning.
The full 2025 IGR dataset, including the state-by-state breakdown, is available through the National Bureau of Statistics’ official data portal.