The Internally Generated Revenue of Nigerian states rose by 34 per cent to N2.43tn in the first half of 2026, up from N1.815tn recorded in the comparable period of 2024, as sub-national governments gained access to more funds despite worsening economic pressures on households.
Findings by The PUNCH showed that 35 states, excluding Rivers State, generated a combined N2.43tn in IGR during the six-month period. Data for H1 2025 IGR for many states are not available.
The IGR growth underscores the expanding revenue base of state governments at a time when they face mounting financial obligations, including infrastructure development, social services, workers’ salaries and other recurrent expenditures.
However, the increase in revenue has intensified questions about how state governments are deploying the additional funds, particularly as they benefit from higher Federation Account allocations and savings from the removal of petrol subsidies.
The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.
