Nigerians Paid Over N40bn in Road Taxes in 2023, Says NBS

By [Your Name], [News Outlet]
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Nigerians paid a total of N40.14 billion in road taxes to state governments in 2023, marking a 63.36% increase from the N24.57 billion collected in 2022, according to data released by the National Bureau of Statistics (NBS).

The figures, drawn from the NBS Internally Generated Revenue (IGR) report, underline the growing importance of road taxes in bolstering state finances across the country.

Lagos Leads with Highest Collection

Lagos State, Nigeria’s commercial hub, topped the list, generating N16.74 billion in road taxes—41.7% of the national total. Notably, Lagos reported no road tax revenue in 2022, making the 2023 figure a substantial rebound.

Ebonyi State also recorded an extraordinary increase, rising by 3,804.32% from N72.95 million in 2022 to N2.85 billion in 2023. Similarly, Rivers State saw a 270.66% surge in collections, amassing N830.01 million compared to N223.93 million the previous year.

Other states with notable increases include:

• Sokoto State: Up 41.22% to N194.66 million

• Yobe State: Up 30.4% to N81.88 million

States With Declining Revenue

In contrast, several states saw significant declines. Enugu State reported a dramatic 95.12% drop in road tax revenue, falling from N1.1 billion in 2022 to just N53.47 million in 2023.

Other notable declines include:

• Katsina State: Down 79.34% to N29.3 million

• Niger State: Down 53.41% to N190.49 million

• Cross River State: Down 62.54% to N1.22 billion

The Federal Capital Territory (FCT) recorded no road tax revenue at all in 2023, despite its administrative prominence.

Overall Revenue Picture

Total IGR across all Nigerian states rose to N2.43 trillion in 2023, a 26% increase from N1.93 trillion in 2022, highlighting an overall upward trend in state-level revenue generation.

Meanwhile, in a separate development, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that the federal government is considering the removal of taxes on essential items such as food, rent, and public transportation.

“We’ve removed almost all the taxes applicable to them, including no VAT,” Oyedele said. “Share-passenger transportation is completely tax-free. However, if you hire a taxi, we assume you’re not the poorest Nigerian so you have to pay tax.”

These reforms aim to ease the financial burden on everyday Nigerians and improve affordability of basic necessities.