FG Reveals Nigerians Paid A Staggering N40 Billion In Road Taxes

FG Reveals Nigerians Paid A Staggering N40 Billion In Road Taxes

According to the Federal Government, through the National Bureau of Statistics (NBS), Nigerians contributed N40.14 billion in road taxes to state governments in 2023. This data comes from the recently published Internally Generated Revenue report by the NBS………CONTINUE READING 

The amount collected represents a remarkable 63.36% increase from the N24.57 billion collected in 2022, underscoring the significant role that road taxes play in state finances across the country.

Lagos State, recognized as Nigeria’s economic hub, topped the list with an impressive N16.74 billion in road tax revenue for 2023. Remarkably, despite not reporting any road tax revenue in 2022, Lagos accounted for 41.7% of the total road tax collected nationwide in 2023.

Ebonyi State recorded an extraordinary surge of 3,804.32%, rising from N72.95 million in 2022 to N2.85 billion in 2023. Other states also saw notable increases: Rivers State’s revenue climbed by 270.66%, reaching N830.01 million compared to N223.93 million in the previous year. Sokoto State’s collections rose by 41.22% to N194.66 million, while Yobe State experienced a 30.4% increase to N81.88 million, albeit with a relatively lower overall figure.

Conversely, several states faced declines in road tax revenue. Enugu State saw a drastic 95.12% drop, plummeting from N1.1 billion in 2022 to N53.47 million in 2023. Katsina State reported a steep decline of 79.34%, with only N29.3 million collected compared to N141.81 million the year before. Niger State experienced a significant decrease, with revenue falling 53.41% to N190.49 million from N408.83 million in 2022. Cross River also recorded a 62.54% decline, with collections dropping from N3.26 billion in 2022 to N1.22 billion in 2023. Notably, the Federal Capital Territory reported no road tax revenue in 2023, which is significant given its administrative importance.

The NBS also highlighted an overall increase in internally generated revenue across Nigerian states, with total IGR reaching N2.43 trillion in 2023, a 26% increase from N1.93 trillion in 2022.

Earlier this September, Taiwo Oyedele, chairman of the presidential committee on fiscal policy, indicated that the committee had proposed to the federal government the elimination of taxes on food, public transportation, housing, and other essential goods critical to the welfare of Nigerians. Oyedele stated, “We focused on essential life necessities—food, housing, transportation, education, and health. We identified these items for tax removal, including abolishing VAT. We believe this fiscal policy approach can help make basic necessities more affordable for the Nigerian people.”