The Federal Government, through the National Bureau of Statistics (NBS), announced that road tax collections across Nigeria surged to N40.14 billion in 2023, marking a 63.36% increase from the N24.57 billion collected in 2022.
This sharp rise in revenue highlights the growing contribution of road taxes to state-level funding.
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EKO HOT BLOG reports that according to the NBS report, Lagos State led the charge, contributing N16.74 billion—41.7% of the national total—despite reporting no road tax revenue in 2022.
Other states showed significant growth as well, with Ebonyi State witnessing an astounding 3,804.32% jump from N72.95 million in 2022 to N2.85 billion in 2023. Rivers State’s road tax collections increased by 270.66%, reaching N830.01 million.
However, several states saw declines in road tax revenues. Enugu State’s collection dropped sharply by 95.12%, from N1.1 billion in 2022 to N53.47 million in 2023. Katsina, Niger, and Cross River states also recorded notable decreases in revenue.
The Federal Capital Territory (FCT), meanwhile, reported no road tax revenue for the year.
In broader terms, internally generated revenue (IGR) for Nigerian states rose significantly to N2.43 trillion in 2023, a 26% increase from N1.93 trillion in 2022. The NBS attributed this rise to efforts in strengthening state revenue channels, including road tax.
In related policy updates, the presidential committee on fiscal policy, chaired by Taiwo Oyedele, has proposed tax exemptions on essential items like food, public transport, and rent.
Lagos road taxes
The initiative aims to ease the financial burden on Nigerians by reducing VAT on basic needs while maintaining taxes on higher-cost services like private taxi hires.
This growth in state revenue from taxes is expected to support infrastructure and economic development amid rising financial needs across Nigeria.
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