Lagos accounts for N33.61bn as road tax revenue rebounds to N49.88bn in 2025…..
Nigeria’s 36 states generated a combined N113.94 billion from road taxes between 2023 and 2025, according to an analysis of data released by the National Bureau of Statistics (NBS).
The figure, contained in the NBS Internally Generated Revenue at State Level 2025 report, represents collections of N40.14 billion in 2023, N23.92 billion in 2024 and N49.88 billion in 2025.
The data show that road tax revenue dropped by N16.22 billion, or 40.42 percent, between 2023 and 2024 before recording a sharp recovery of N25.96 billion, equivalent to 108.53 percent, in 2025.
The significant decline in 2024 was partly influenced by the absence of Lagos’ road tax figure for that year. Lagos collected N16.74 billion in 2023 and N16.87 billion in 2025, meaning the missing 2024 figure had a notable impact on the national total.
The NBS defines road taxes as “daily levies paid by commercial transporters operating within the states.”
The bureau said the revenue figures for the 36 states and the Federal Capital Territory were compiled by the Joint Revenue Board from official records and submissions by State Boards of Internal Revenue.
Lagos leads three-year collections
The figures reveal a wide gap in road tax collections across the states, with Lagos remaining the dominant contributor among states with reported figures.
The state collected N33.61 billion in 2023 and 2025 alone, accounting for 29.5 percent of the N113.94 billion recorded nationally during the three-year period.
Delta ranked next outside Lagos, generating N8.64 billion over the period. Its collections rose consistently from N2.60 billion in 2023 to N2.71 billion in 2024 and N3.33 billion in 2025.
Ondo followed with cumulative collections of N5.99 billion, comprising N1.59 billion in 2023, N1.73 billion in 2024 and N2.67 billion in 2025.
Ogun generated N5.49 billion during the period, while Edo and Cross River recorded N5.32 billion and N5.28 billion respectively.
In 2023, Lagos topped the state rankings with N16.74 billion, followed by Ebonyi with N2.85 billion and Delta with N2.60 billion. Ogun recorded N1.64 billion, while Zamfara and Ondo generated N1.61 billion and N1.59 billion respectively.
With no road tax figure reported for Lagos in 2024, Delta emerged as the highest collector with N2.71 billion. Cross River followed with N1.77 billion, while Ondo, Ogun and Edo recorded N1.73 billion, N1.72 billion and N1.58 billion respectively.
Lagos returned to the top in 2025 with N16.87 billion, representing about 33.8 percent of the N49.88 billion collected nationally that year.
Delta followed with N3.33 billion, while Ondo recorded N2.67 billion. Cross River, Edo and Ogun generated N2.29 billion, N2.14 billion and N2.12 billion respectively.
Bauchi, Nasarawa record sharp increases
Several states recorded substantial increases in road tax collections in 2025.
Bauchi recorded one of the biggest jumps, with revenue increasing from N413.51 million in 2024 to N1.89 billion in 2025. That represents an increase of N1.48 billion, or 357.32 percent.
Nasarawa recorded a similar surge, with collections rising by 357.23 percent from N226.10 million to N1.03 billion.
Kogi’s road tax revenue also more than doubled, increasing by 124.84 percent from N727.84 million to N1.64 billion.
Ebonyi recorded a rise from N249.35 million in 2024 to N533.43 million in 2025, while Gombe increased from N221.97 million to N411.33 million.
Ondo also recorded higher collections, moving from N1.73 billion in 2024 to N2.67 billion in 2025.
Some states record sharp declines
Not all states recorded growth during the period, with some experiencing significant declines in 2025.
Kebbi posted the steepest fall, with road tax collections dropping by 73.52 percent from N247.35 million in 2024 to N65.49 million in 2025.
Katsina followed with a 54.94 percent decline, falling from N106.03 million to N47.78 million, while Sokoto dropped by 49.05 percent from N165.04 million to N84.09 million.
Bayelsa’s collections declined for the second consecutive year, falling from N146.60 million in 2023 to N102.18 million in 2024 and N70.92 million in 2025.
Over the three-year period, Katsina recorded the lowest cumulative road tax revenue at N183.10 million. Yobe followed with N309.04 million, while Bayelsa generated N319.70 million.
Adamawa recorded N363.59 million, with Kebbi slightly higher at N364.69 million.
For 2025 alone, Katsina had the lowest collection at N47.78 million, followed by Kebbi with N65.49 million, Bayelsa with N70.92 million, Sokoto with N84.09 million and Jigawa with N96.84 million.
Road tax forms part of states’ IGR
Road tax is one of several revenue streams captured under states’ internally generated revenue. The NBS classification also includes Pay-As-You-Earn, direct assessment, stamp duties, capital gains tax, withholding taxes, other taxes and local government revenue.
The bureau said the 36 states and the Federal Capital Territory generated N5.15 trillion in total internally generated revenue in 2025, representing a 40.93 percent increase from N3.65 trillion recorded in 2024.
Tax revenue accounted for 73.64 percent of the total IGR recorded in 2025.
The NBS, however, cautioned that the figures remain “subject to reconciliations and updates by the respective sub-national revenue authorities.”
The latest figures come amid federal efforts to reform tax collection practices across the country.
In March 2026, the Federal Government had formally prohibited cash tax collection and the use of roadblocks for revenue enforcement as part of regulations introduced to implement the new tax laws.
The Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, disclosed this during the signing of the Presumptive Tax Regulations and Guidelines on the Implementation of the Tax Laws at the Federal Ministry of Finance.
Adesokan said the regulations were intended to eliminate informal and coercive tax collection practices, particularly at the sub-national level.
“It bans all forms of cash collection by tax authorities. It also bans the mounting of roadblocks for the collection of taxes,” he said.
The Joint Revenue Board also announced a partnership with the Nigeria Police Force to tackle illegal tax collection and remove roadblocks erected specifically for revenue collection across the country.
