Nigerians Paid N40bn in Road Taxes to States in 2023, Up 63% from 2022
By Okafor Joseph Afam
November 4, 2024
The National Bureau of Statistics (NBS) has reported that Nigerians paid a total of N40.14 billion in road taxes to state governments in 2023, according to its recent Internally Generated Revenue report. This amount marks a significant 63.36% increase from the N24.57 billion collected in 2022, underscoring the growing role of road taxes in state revenue streams.
Lagos State, the country’s economic hub, led the pack, collecting N16.74 billion in road tax revenue in 2023. Despite not reporting any road tax collections in 2022, Lagos accounted for 41.7% of the total road tax revenue this year. Ebonyi State also saw an extraordinary rise in its collections, with a 3,804.32% increase from N72.95 million in 2022 to N2.85 billion in 2023.
Several other states recorded notable increases. Rivers State collected N830.01 million, a 270.66% rise from N223.93 million in 2022. Sokoto State reported a 41.22% increase, reaching N194.66 million, while Yobe State’s collections rose by 30.4%, totaling N81.88 million.
Conversely, some states saw steep declines in road tax revenue. Enugu State reported a 95.12% drop, falling from N1.1 billion in 2022 to N53.47 million. Katsina State’s revenue fell by 79.34%, dropping to N29.3 million from N141.81 million. Niger State’s collections decreased by 53.41%, down to N190.49 million from N408.83 million, and Cross River reported a 62.54% decline, with revenue falling from N3.26 billion to N1.22 billion.
The Federal Capital Territory, however, reported no road tax revenue in 2023, despite its administrative significance.
The report highlights the increasing reliance of state governments on road tax as a vital revenue source, reflecting shifts in economic conditions and state-level fiscal strategies across the nation.
