Nigeria’s 36 states generated a combined N113.94bn from road taxes between 2023 and 2025, according to an analysis of National Bureau of Statistics data.
Figures contained in the NBS Internally Generated Revenue at State Level 2025 report showed that the states collected N40.14bn in 2023, N23.92bn in 2024 and N49.88bn in 2025.
Road tax revenue therefore dropped by N16.22bn, representing a 40.42 per cent decline, between 2023 and 2024 before rising sharply by N25.96bn, or 108.53 per cent, in 2025.
The significant decline recorded in 2024 was partly linked to the absence of Lagos State’s road tax figure for that year. Lagos collected N16.74bn in 2023 and N16.87bn in 2025, meaning the missing 2024 figure had a notable impact on the national total.
The NBS describes road taxes as “daily levies paid by commercial transporters operating within the states.” The bureau said the figures covering 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 Collections
The data revealed substantial differences in road tax collections across the states. Lagos alone generated N33.61bn in the two years for which figures were available, accounting for 29.5 per cent of the N113.94bn national total despite the missing 2024 data.
Delta State ranked highest among the states outside Lagos, generating N8.64bn over the three-year period. Its collections increased from N2.60bn in 2023 to N2.71bn in 2024 and N3.33bn in 2025.
Ondo followed with cumulative revenue of N5.99bn, comprising N1.59bn in 2023, N1.73bn in 2024 and N2.67bn in 2025.
Ogun generated N5.49bn during the period, while Edo and Cross River recorded N5.32bn and N5.28bn respectively.
Lagos topped the 2023 rankings with N16.74bn, followed by Ebonyi with N2.85bn and Delta with N2.60bn. Ogun collected N1.64bn, Zamfara N1.61bn and Ondo N1.59bn.
With Lagos’ 2024 figure unavailable, Delta emerged as the highest collector that year with N2.71bn. Cross River followed with N1.77bn, Ondo with N1.73bn, Ogun with N1.72bn and Edo with N1.58bn.
Lagos returned to the top in 2025 after reporting N16.87bn, representing about 33.8 per cent of the N49.88bn collected nationally. Delta followed with N3.33bn and Ondo with N2.67bn, while Cross River, Edo and Ogun recorded N2.29bn, N2.14bn and N2.12bn respectively.
Bauchi, Nasarawa Record Sharp Increases
Several states recorded significant growth in road tax collections in 2025.
Bauchi posted one of the largest increases, with revenue climbing from N413.51m in 2024 to N1.89bn in 2025 — an increase of N1.48bn or 357.32 per cent.
Nasarawa recorded a similar rise of 357.23 per cent, moving from N226.10m to N1.03bn. Kogi’s collections increased by 124.84 per cent, from N727.84m to N1.64bn.
Ebonyi’s revenue more than doubled, rising from N249.35m in 2024 to N533.43m in 2025. Gombe also increased from N221.97m to N411.33m, while Ondo rose from N1.73bn to N2.67bn.
However, several states recorded declines.
Kebbi experienced the sharpest drop, with road tax revenue falling 73.52 per cent from N247.35m in 2024 to N65.49m in 2025. Katsina declined by 54.94 per cent, from N106.03m to N47.78m, while Sokoto fell 49.05 per cent from N165.04m to N84.09m.
Bayelsa recorded a second consecutive annual decline, with collections dropping from N146.60m in 2023 to N102.18m in 2024 and N70.92m in 2025.
Over the three-year period, Katsina had the lowest cumulative road tax revenue at N183.10m, followed by Yobe with N309.04m and Bayelsa with N319.70m. Adamawa generated N363.59m, while Kebbi recorded N364.69m.
In 2025 alone, Katsina posted the lowest collection at N47.78m, followed by Kebbi with N65.49m, Bayelsa with N70.92m, Sokoto with N84.09m and Jigawa with N96.84m.
States’ IGR Hits N5.15tn
Road tax receipts formed part of the broader tax revenue collected by state governments. The NBS classification includes PAYE, direct assessment, road taxes, stamp duties, capital gains tax, withholding taxes, other taxes and local government revenue.
Overall, the 36 states and the FCT generated N5.15tn in internally generated revenue in 2025, representing a 40.93 per cent increase from N3.65tn recorded in 2024. Tax revenue accounted for 73.64 per cent of the 2025 total.
The NBS cautioned that the figures were “subject to reconciliations and updates by the respective sub-national revenue authorities.”
The development comes amid recent efforts to reform tax collection practices across the country.
NEWSCLICKNG reported in March 2026 that the Federal Government had prohibited cash tax collection and banned the use of roadblocks for tax enforcement under regulations introduced to support the implementation of 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 framework was intended to eliminate informal, coercive and fragmented 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 for tax collection purposes across the country.