The National Bureau of Statistics (NBS) has revealed that Nigerians paid a staggering N40.14 billion in road taxes to state governments in 2023, marking a 63.36 percent increase from the N24.57 billion collected in 2022.
The significant rise in road tax collections highlights the growing role of these levies in supporting state finances.
Lagos State, often recognized as Nigeria’s economic hub, led the states by a wide margin, generating N16.74 billion in road taxes, which accounted for 41.7 percent of the national total in 2023.
This achievement is particularly noteworthy, as Lagos had no recorded revenue from road taxes in the previous year.
The NBS report further indicated exceptional revenue growth in states like Ebonyi, where collections surged by an astounding 3,804.32 percent from N72.95 million in 2022 to N2.85 billion in 2023.
Rivers State followed suit with a 270.66 percent increase, collecting N830.01 million, up from N223.93 million in the previous year.
Sokoto State reported a more modest but steady growth, with road tax revenue rising by 41.22 percent to N194.66 million.
Yobe State also saw a rise of 30.4 percent, reaching N81.88 million in 2023.
However, not all states recorded positive gains. Enugu State experienced a dramatic 95.12 percent drop in road tax revenue, collecting only N53.47 million compared to N1.1 billion in 2022.
Katsina State saw a sharp 79.34 percent decline, generating just N29.3 million against the N141.81 million it collected the previous year.
Similarly, Niger State faced a 53.41 percent reduction, with road tax revenue falling to N190.49 million from N408.83 million in 2022.
Cross River State also recorded a 62.54 percent drop, with collections decreasing from N3.26 billion to N1.22 billion.
In a surprising finding, the Federal Capital Territory reported no road tax revenue in 2023, despite its status as Nigeria’s administrative center.
The NBS report also highlighted a broader increase in internally generated revenue across Nigerian states. Total IGR reached N2.43 trillion in 2023, representing a 26 percent rise from N1.93 trillion in 2022.
Amid these tax increases, there have been discussions around reducing tax burdens on essential services.
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