Away from the capital market, the 36 states of the federation and the Federal Capital Territory generated a combined sum of 5.15 trillion naira in Internally Generated Revenue (IGR) in 2025.
This figure represents a 40.93 per cent increase from the 3.65 trillion naira recorded in 2024.
The latest figures from the National Bureau of Statistics, NBS, show that Lagos State accounted for a significant portion of the revenue, generating 1.77 trillion naira during the year.
Rivers State followed with 428.42 billion, while Enugu generated 406.77 billion naira to rank third among the states.
At the bottom of the table were Yobe, Ebonyi and Sokoto states, which generated 16.01 billion, 17.18 billion and 20.48 billion naira respectively.
Edo generated 132 billion to rank 7th on the list behind Delta which generated 202 billion naira.
The figures highlight a wide disparity in the revenue-generating capacity of states, with the NBS data showing continued differences in the ability of sub-national governments to raise funds internally.
Tax revenue remained the major source of IGR nationwide, accounting for 73.64 per cent of total internally generated revenue in 2025.
Personal income tax collected through the Pay-As-You-Earn, PAYE, system was the largest component, generating 2.64 trillion naira, representing 69.51 per cent of total tax revenue collected by the states and the FCT.
Capital gains tax, on the other hand, contributed the least among the tax components, generating 12.40 billion naira during the period.
The NBS data also show the extent of the concentration of internally generated revenue among a few states. Lagos’s ₦1.77 trillion was more than four times the revenue generated by Rivers and over 100 times the figure recorded by Yobe.
The figures suggest that employment levels, formal economic activity and the size of the taxable population remain important factors in determining states’ capacity to generate revenue internally, particularly with PAYE accounting for a large share of tax collections.