Official data shows Nigerian sub-national governments generated ₦2.43 trillion in Internally Generated Revenue (IGR) in the first half of 2026, up from ₦1.81 trillion in H1 2024, despite continuing economic pressure on households. The increase reflects state governments' efforts to expand their revenue bases and reduce dependence on federal allocations.
The growth in IGR is a positive sign for the fiscal health of sub-national governments. The increase suggests that states are becoming more efficient in revenue collection. However, pressure on households means revenue growth may not be sustainable. States must balance the need for revenue with the welfare of their citizens.
The winners: state governments, which have more resources; and the Nigerian economy, which benefits from increased revenue. The losers: taxpayers, who bear the burden; and the Nigerian government, which must ensure that the revenue is used wisely.
Bottom Line: State governments are collecting more revenue. The question is whether the growth is sustainable or a result of increased pressure on households.