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On Wednesday, January 18, the National Bureau of Statistics (NBS) published its report on states’ Internally Generated Revenue for the first half (H1) of 2016. The report detailed revenues for 29 states of the federation which had submitted their figures to the NBS.

The following are the top revenue generating states according to the report:

  1. Lagos

As expected, Lagos led the way with a total of over ₦150 billion generated by the state between January and June 2016. This accounts for close to half the total amount collected by the 29 states for which data is available. Less than 14% (₦19.855 billion) of its revenue came from services rendered by government Ministries, Departments and Agencies (MDAs); over 60% was derived from taxes on wages and salaries of employees operating in the formal sector (Pay As You Earn, deducted by employers). Taxes on commercial transporters in the state yielded over ₦5.2 billion.

  1. Ogun

Ogun ranked second in the NBS’s report. The state made over ₦28 billion in the period under review; of this, about ₦17 billion was generated by MDAs (representing over 60% of its total revenue). Its second biggest source of revenue was taxes from the formal sector, which totaled about ₦8.5 billion. Taxes from the self-employed and businesses operating in the informal sector by state authorities gave ₦677 million.

  1. Delta

The oil-rich state’s ₦22.4 billion revenue was largely contributed to by taxes collected through corporations- ₦19.6 billion came in from the formal sector. Revenue from land registration, development levies, stamp duties and collections from market traders amounted to ₦1.4 billion. Payments for state services contributed ₦932.4 million.

  1. Kano

Northern Nigeria’s center of commerce had the highest Internally Generated Revenue of any state in that part of the country. It raked in ₦17.23 billion to place fourth in the list of states which reported their IGR for the first half of 2016. MDAs gave more to the state than any other revenue source (₦7.43 billion), but taxes on workers in the formal sector contributed a significant portion (₦6.39 billion) of the state’s revenue.

  1. Edo

Over 50% of Edo state’s ₦10.3 billion IGR came from taxes placed on employees of businesses (presumably dominated by corporations operating in the oil sector). Land registrations, other land related fees and development levies brought in ₦2.9 billion, while government services added ₦1.4 billion to the state’s total revenue.

Other states in the top 10 are Akwa Ibom (with an Internally Generated Revenue of ₦8.29 billion), Kwara (₦8.2 billion), Kaduna (₦7.7 billion), Cross River (₦6.77 billion) and Enugu (₦6.3 billion).

Abia, Anambra, Bauchi, Ebonyi, Oyo, Rivers, and Sokoto did not have their IGR for the first half of 2016 reported.

The full report can be downloaded from the NBS’s website, nigerianstat.gov.ng.

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This article was first published on 20th January 2017

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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