STATES’ IGR SOARS 34% TO ₦2.43TN DESPITE ECONOMIC HARDSHIP

The Internally Generated Revenue of Nigerian states rose by 34 per cent to ₦2.43 trillion in the first half of 2026, despite continued economic pressures on households and businesses.

Data showed that 35 states, excluding Rivers State, generated the combined ₦2.43 trillion between January and June 2026, compared with ₦1.815 trillion recorded by the same states in the first half of 2024.

The increase highlights the growing revenue base of state governments as they face rising obligations, including infrastructure development, salaries, social services and other recurrent expenditures.

However, the stronger revenue performance has renewed questions about how states are deploying the additional funds, particularly as governments have also benefited from higher Federation Account allocations and savings associated with petrol subsidy removal.

Stakeholders have called for greater transparency over the use of the additional resources, including the estimated ₦10.4 trillion in subsidy savings allocated to state and local governments.

Analysts noted that increased government revenue had not necessarily translated into improved living conditions for many Nigerians, with states still facing challenges such as inadequate infrastructure, weak social services, poverty and limited economic opportunities.

They therefore urged state governments to prioritise productive investments that can expand economic activity, create jobs and reduce pressure on households.

Experts also called for stronger fiscal discipline and accountability, saying higher IGR and Federation Account allocations would have limited impact unless public funds were efficiently managed.

The rise in state revenue comes at a time when Nigerians continue to face elevated living costs and declining purchasing power, making effective deployment of public resources increasingly important.

Stakeholders said states should ensure that growing revenues translate into visible improvements in infrastructure, social services and economic opportunities for residents.