According to a newly released Internally Generated Revenue report by the National Bureau of Statistics (NBS), Nigerians contributed N40.14 billion in road taxes to state governments in 2023.Â
This significant figure shows the rising importance of road taxes as a source of revenue for state-level finances. It reflects a notable 63.36% increase compared to the N24.57 billion collected in 2022.
Lagos State, Nigeria’s economic powerhouse, topped the list with N16.74 billion collected in road tax revenue for 2023. Remarkably, despite not recording any road tax revenue in 2022, Lagos accounted for 41.7% of the total road tax collected in 2023.Â
Another standout performer was Ebonyi State, which saw a staggering 3,804.32% surge in road tax revenue, jumping from a modest N72.95 million in 2022 to N2.85 billion in 2023.
Rivers State also showed a remarkable performance, registering a 270.66% increase in road tax collections, reaching N830.01 million from the previous N223.93 million in 2022. Other states with notable growth included Yobe, which posted a 30.4% rise to N81.88 million, and Sokoto, which saw its revenue grow by 41.22% to N194.66 million.
However, not all states share this upward trend. Katsina State experienced a sharp decline in road tax revenue, plummeting 79.34% to N29.3 million from N141.81 million in 2022. Enugu State faced an even more severe drop of 95.12%, with revenue falling from N1.1 billion to just N53.47 million.Â
Niger State reported a 53.41% decrease, bringing in N190.49 million compared to N408.83 million the previous year. Similarly, Cross River State’s road tax revenue fell by 62.54%, from N3.26 billion to N1.22 billion.
A notable omission in the report was the road tax revenue from the Federal Capital Territory (FCT), which remained absent despite the administrative importance of such taxes. This gap highlights potential data collection challenges or reporting inconsistencies at the federal level, emphasizing the need for better transparency and comprehensive reporting practices.
