Kano State has emerged as the highest internally revenue-generating state in Northern Nigeria for 2024, according to a new report released by the National Bureau of Statistics (NBS) on Monday.
The report, titled Internally Generated Revenue (IGR) at State Level 2024, shows that Kano generated ₦74.77 billion, maintaining its lead among northern states and ranking ninth nationwide.
However, despite Kano’s position, the figures reveal a widening fiscal disparity between the North and the South, as Lagos State alone generated ₦1.26 trillion — more than twice the combined IGR of many northern states.
Lagos Maintains Overall Lead
Lagos retained its dominance as Nigeria’s economic powerhouse, accounting for over one-third of the nation’s total subnational revenue. The state’s ₦1.26 trillion IGR represents a 49.7 per cent increase from ₦843.3 billion in 2023.
According to the report, it was followed by Rivers (₦317.3 billion), Federal Capital Territory (₦282.36 billion), Ogun (₦194.93 billion), and Enugu (₦180.5 billion) who outperform other states in fiscal independence and economic activity.
Northern States’ Performance
Following Kano, Kaduna State generated ₦71.57 billion, ranking second in the North and tenth nationally. Other states’ performance from the North include: Kwara – ₦71.19 billion; Jigawa – ₦59.45 billion; Katsina – ₦39.15 billion; Niger – ₦34.66 billion; Bauchi – ₦32.43 billion; Kogi – ₦32.01 billion; Plateau – ₦31.13 billion and Borno – ₦27.80 billion.
At the bottom of the northern chart were Yobe (₦11.08 billion), Kebbi (₦16.97 billion), Taraba (₦17.46 billion), Adamawa (₦20.29 billion), and Gombe (₦20.72 billion), among the lowest revenue earners in the country.
Collectively, the 19 northern states generated an estimated ₦590 billion, less than half of Lagos’s total IGR.
Analysts have urged northern governments to strengthen local tax administration, expand their productive sectors, and leverage agriculture, mining, and digital taxation to improve revenue.
Tax Revenues Drive Growth
The NBS report indicates that tax revenues, particularly Pay-As-You-Earn (PAYE), remain the backbone of state-level IGR nationwide. PAYE contributed ₦1.86 trillion, representing nearly 70 per cent of all tax receipts.
In contrast, revenues from ministries, departments and agencies (MDAs), as well as non-tax sources, remained weak across most northern states, reflecting a lack of diversification in their economies.
Despite the challenges, Kano’s consistent growth in internally generated revenue highlights the potential for other northern states to follow suit. The state’s efforts in broadening its tax base, digitising revenue collection, and supporting small businesses have contributed to its improved performance.
Still, experts caution that fiscal sustainability in the North will require bold reforms, institutional strengthening, and long-term investment in productive sectors to reduce reliance on federal allocations.
