The thirty-six states of the federation, including the federal capital territory, recorded a cumulative internally generated revenue (IGR) of N1.89 trillion in 2021, an increase of 21.5% compared to N1.56 trillion recorded in the previous year.
This is according to recent data on states’ IGR released by the National Bureau of Statistics (NBS).
The total Internally generated revenue, recorded by the states rose beyond pre-pandemic levels after it dipped in 2020 due to the lockdown measures put in place by the federal government to curb the spread of the pandemic.
In 2020, the IGR recorded by the states had dropped from N1.64 trillion recorded in 2019 to N1.56 trillion. However, with economic activities fully opened across the country, the IGR surpassed pre-pandemic levels.
•A further breakdown of the data showed that tax revenue accounted for 65% of the total amount generated in the review period at N1.23 trillion, while a sum of N665.89 billion was generated from other sources.
•Meanwhile, Lagos State maintained the top spot in terms of aggregate IGR generation with N753.5 billion, followed by Abuja with total revenue of N131.92 billion. Also, Sokoto State recorded the highest year-on-year increase, growing its revenue by 101.4% to stand at N23.76 billion.
The increase in the state’s revenue is important considering the revenue crisis bedeviling the country’s fiscal policy, as the federal government currently relies heavily on borrowing to fund its expenses.