Nigerians have significantly increased their road tax payments, with the National Bureau of Statistics (NBS) reporting a remarkable 63.36% rise in revenue collected by state governments in 2023. The total amount paid reached approximately N40.14 billion, compared to N24.57 billion in the previous year. This surge highlights the growing importance of road taxes in state-level financing.
Interestingly, the report noted that the Federal Capital Territory (FCT) did not contribute any road tax revenue in 2023. The NBS’s recently published Internally Generated Revenue report reflects a shift in fiscal dynamics, with road taxes becoming a vital source of income for various states.
Leading the charge, Lagos State accounted for the lion’s share of road tax revenue, generating N16.74 billion, which represents an impressive 41.7% of the total. Notably, Lagos had not collected any road tax revenue in 2022, marking a significant turnaround.
Ebonyi State also made headlines with an extraordinary 3,804.32% increase in road tax revenue, jumping from N72.95 million in 2022 to N2.85 billion in 2023. Other states that experienced substantial growth include Rivers State, which saw a 270.66% rise, collecting N830.01 million compared to N223.93 million the previous year. Sokoto State’s collections grew by 41.22% to N194.66 million, while Yobe State recorded a 30.4% increase to N81.88 million.
However, the report also highlighted some concerning declines. Enugu State faced a staggering 95.12% drop in revenue, plummeting from N1.1 billion to just N53.47 million. Similarly, Katsina State experienced a steep decline of 79.34%, with collections falling to N29.3 million from N141.81 million. Niger State also saw a significant reduction, with revenue down 53.41% to N190.49 million from N408.83 million, and Cross River’s revenue decreased by 62.54%, dropping from N3.26 billion to N1.22 billion.
This report underscores the varied landscape of road tax revenues across Nigeria, indicating both significant opportunities for revenue growth in some states and critical challenges in others.
