Highway taxes are one of many essential elements of internally generated income (IGR) for Nigerian states.
The 2023 IGR report, compiled by the Joint Tax Board in partnership with state income authorities, supplies perception into how these taxes contribute to state-level funds.
Highway taxes are day by day levies imposed totally on business transport operators, reflecting the extent of street use, {economic} actions, and the effectiveness of tax enforcement in every state.
This income supply performs an important position in financing street upkeep, transportation infrastructure, and public companies throughout areas.
A report by the Nationwide Bureau of Statistics (NBS) highlights a considerable general enhance in IGR throughout Nigerian states, with street taxes contributing considerably to this development.
In 2023, the 36 states and the Federal Capital Territory (FCT) collectively generated N2.43 trillion, marking a 26% enhance from N1.93 trillion in 2022.
Lagos, Rivers, and the FCT emerged as prime contributors to IGR, indicating their strategic {economic} significance.
In 2023, Nigerian states collected a complete of roughly N80.28 billion in street taxes, reflecting a big enhance from the N49.14 billion collected in 2022.
This represents a 63.4% development year-on-year, highlighting improved tax enforcement efforts, elevated {economic} actions, or expanded transport infrastructure in a number of states.
The large variation in street tax income amongst states displays the regional disparities in {economic} actions, starting from industrial hubs like Lagos and Ogun to agricultural states like Ebonyi and Zamfara.
Additionally, the enforcement of transport levies serves as a gauge for a state’s capability to capitalize on business transport operations.
Whereas states like Ebonyi, Zamfara, and Cross River demonstrated outstanding development, Ogun’s decline alerts that even high-performing states can expertise fluctuations.
Beneath are the highest 10 states in Nigeria primarily based on street tax collections in 2023:
10. Rivers State – N830 million
Situated within the South-South area and residential to Port Harcourt, a hub for oil and fuel actions, Rivers State reported no street tax income in 2022.
- Nonetheless, in 2023, it collected N830 million, signaling both new tax enforcement insurance policies or higher compliance throughout the state.
- The introduction or enchancment of toll techniques or higher coordination in tax assortment seemingly contributed to this sudden rise.
- As one among Nigeria’s oil-producing states, Rivers advantages from heavy street utilization, particularly from vans concerned in oil transportation.
9. Kano State – N967.17 million
Kano, a business and transportation hub within the North-West, noticed a slight enhance of two% in street tax income, from N942.91 million in 2022 to N967.17 million in 2023.
- Identified for its vibrant markets and industries, the state’s financial system depends closely on items transported throughout northern Nigeria.
- The modest rise suggests constant {economic} exercise, regardless of the {economic} challenges confronted nationwide.
- This stability displays Kano’s significance as a commerce hall for each agricultural merchandise and manufactured items.
8. Cross River State – N1.22 billion
Cross River, located within the South-South and recognized for tourism, agriculture, and the annual Calabar Carnival, recorded an astronomical enhance in street tax income—leaping from N137.84 million in 2022 to N1.22 billion in 2023, a development of over 780%.
- This drastic rise seemingly signifies improved tax enforcement mechanisms or expanded {economic} exercise.
- The state’s tourism and agriculture sectors may need pushed extra street utilization, contributing to the surge in tax income.
7. Edo State – N1.59 billion
Edo, one other South-South state, skilled a big 66% enhance in street tax collections, from N960.59 million in 2022 to N1.59 billion in 2023.
- Identified for its strategic location alongside main transport routes connecting southern Nigeria with the north, the rise displays intensified enforcement of street levies or improved compliance by transport operators.
- Edo’s financial system, which depends on commerce and transportation, seemingly noticed extra street exercise, boosting tax collections.
6. Ondo State – N1.59 billion
Ondo, positioned within the South-West, recorded a considerable 238% enhance in street tax collections, from N471.20 million in 2022 to N1.59 billion in 2023.
- Ondo is thought for its cocoa production and bitumen reserves, attracting vital industrial and agricultural transport exercise.
- The rise in street tax income may also mirror elevated enforcement or {economic} enlargement within the state’s transport sector.
5. Zamfara State – N1.61 billion
Zamfara, located within the North-West, noticed one of many largest will increase in street tax collections, surging by 479% from N278.68 million in 2022 to N1.61 billion in 2023.
- Regardless of going through safety challenges, this development signifies vital strides in income assortment.
- It additionally highlights a doable rise in {economic} actions, particularly from mining operations, transportation of products, or tighter enforcement insurance policies.
4. Ogun State – N1.64 billion
Ogun, positioned within the South-West and famend for its industrial zones and border proximity to Lagos, reported a ten% decline in street tax income, dropping from N1.82 billion in 2022 to N1.64 billion in 2023.
- This dip might mirror a slowdown in industrial actions or shifts in tax assortment methods.
- Regardless of the decline, Ogun stays a big contributor to IGR because of its strategic place as a transit state for items transferring to and from Lagos.
3. Delta State – N2.60 billion
Delta, within the South-South and a key oil-producing state, skilled a modest 5% enhance in street tax collections, rising from N2.48 billion in 2022 to N2.60 billion in 2023.
- The regular development displays constant {economic} exercise, notably in oil logistics and transportation.
- Delta’s community of roads helps the motion of products and companies, and its proximity to the coast performs a vital position in driving tax income.
2. Ebonyi State – N2.85 billion
Ebonyi, positioned within the southeast and recognized for its agricultural prowess, particularly rice production, reported essentially the most vital proportion development in street tax collections.
- The state’s income surged by 540%, from N445.24 million in 2022 to N2.85 billion in 2023.
- This outstanding enhance could possibly be because of stronger enforcement, elevated transport exercise, or improved assortment effectivity.
- Ebonyi’s rising transport sector and increasing financial system seemingly contributed to the surge in tax collections.
1. Lagos State – N16.74 billion
Lagos, Nigeria’s {economic} hub and the business nerve centre of West Africa, unsurprisingly tops the checklist with a powerful N16.74 billion in street tax income for 2023.
- Though no comparable information was out there for 2022, this determine highlights Lagos’ reliance on its intensive transport community and bustling financial system.
- The state’s roads assist a excessive quantity of business actions, with automobiles starting from private vehicles to business vans contributing to its tax income.
- The numerous assortment highlights Lagos’ standing as the most important financial system in Nigeria.