States Generate N114bn From Road Taxes in Three Years

Nigeria’s 36 states generated N113.94bn from road taxes between 2023 and 2025, according to data from the National Bureau of Statistics.

The figure comprised N40.14bn collected in 2023, N23.92bn in 2024 and N49.88bn in 2025, reflecting significant fluctuations in revenue collection during the three-year period.

Road tax collections fell by N16.22bn, or 40.42 per cent, between 2023 and 2024 before rebounding by N25.96bn, representing a 108.53 per cent increase, in 2025.

Road taxes are defined as daily levies paid by commercial transport operators operating within the states.

The data showed wide differences in road tax collections among the states. Lagos accounted for N33.61bn during the two years for which figures were available, representing about 29.5 per cent of the total road tax revenue recorded nationally over the three-year period.

Lagos generated N16.74bn in 2023 and N16.87bn in 2025, but its 2024 figure was not reported. The absence of the Lagos figure contributed significantly to the decline recorded in the national total that year.

Delta State was the highest collector outside Lagos, generating N8.64bn over the three years. Its collections increased from N2.60bn in 2023 to N2.71bn in 2024 and N3.33bn in 2025.

Ondo followed with N5.99bn, while Ogun generated N5.49bn. Edo and Cross River recorded N5.32bn and N5.28bn respectively during the period.

In 2025, Lagos again recorded the highest road tax collection with N16.87bn, accounting for about 33.8 per cent of the N49.88bn collected nationally that year.

Delta followed with N3.33bn, while Ondo generated N2.67bn. Cross River, Edo and Ogun recorded N2.29bn, N2.14bn and N2.12bn respectively.

Some states recorded substantial increases in 2025. Bauchi’s collection rose from N413.51m in 2024 to N1.89bn in 2025, representing a 357.32 per cent increase.

Nasarawa also recorded a 357.23 per cent increase, rising from N226.10m to N1.03bn, while Kogi’s collection increased by 124.84 per cent to N1.64bn.

However, Kebbi recorded a 73.52 per cent decline, while Katsina and Sokoto recorded decreases of 54.94 per cent and 49.05 per cent respectively.

The road tax receipts formed part of the broader internally generated revenue collected by states. In 2025, the 36 states and the Federal Capital Territory generated N5.15tn in total IGR, representing a 40.93 per cent increase from N3.65tn recorded in 2024.