Economy
Lagos Generates More IGR than 30 States Combined—Report
By Dipo Olowookere
A new report released by Economic Confidential has revealed that Lagos State generates more Internally Generated Revenue (IGR) than 30 of the 36 states in the federation combined.
The report by this economic intelligence magazine indicates that the IGR of Lagos State of N333 billion is higher than that of 30 States put together whose IGR are extremely low and poor compared to their allocations from the Federation Account.
The states with impressive over 30 percent IGR apart from Lagos are Ogun, Rivers, Edo, Kwara, Enugu and Kano States who generated N607 billion in total, while the remaining states merely generated a total of N327 billion in 2017.
In its Annual States Viability Index (ASVI), the reputable journal also said only 17 states are insolvent as their IGRs in 2017 were far below 10 percent of their receipts from the Federation Account Allocations (FAA) in the same year.
The index, carefully and painstakingly computed, proved that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.
The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDAs).
Recently, the magazine published the total allocations received by each state in Nigeria from FAA from January to December 2017.
The latest report on IGR revealed that only Lagos and Ogun States generated more revenue than their allocations from the Federation Account by 165 percent and 107 percent respectively and no any other state has up to 100 percent of IGR to the federal largesse.
The IGR of the 36 states of the federation totalled N931 billion in 2017 as compared to N801.95 billion in 2016, an increase of N130 billion.
While the report provides shocking discoveries, the states with less than 10 percent IGR have jumped to 17 from 14 states in the previous year 2016.
The poor states may not stay afloat outside FAA due to socio-political crises including insurgency, militancy, armed-banditry and herdsmen attacks. Other states lack foresight in revenue generation drive coupled with arm-chair governance.
The states that may not survive without the Federation Account due to poor internal revenue generation are Bauchi which realized a meagre N4.3 billion compared with a total of N85 billion it received from FAA in 2017 representing about 5 percent; Yobe with IGR of N3.59 billion compared with FAA of N67 billion representing 5.33 percent; Borno N4.9 billion compared with FAA of N92 billion representing 5.41 percent; Kebbi with IGR of N4.39 billion compared with N76 billion of FAA representing 5.77 percent and Katsina with IGR of N6bn compared to N103 billion of FAA representing 5.8 percent within the period under review.
Other poor internal revenue earners are Niger which generated N6.5 billion compared to FAA of N87 billion representing 7.43 percent; Jigawa N6.6 billion compared to FAA of N85 billion representing 7.75 percent; Imo N6.8 billion compared with FAA of N85 billion representing 8.1 percent and Akwa Ibom N15 billion compared with FAA of N197 billion representing 8.06 percent, Ekiti N4.9 billion compared with FAA of N59 billion representing 8.38 percent; Osun N6.4 billion compared with FAA of N76 billion representing 8.45 percent, Adamawa N6.2 billion compared with FAA of N72.9 billion representing 8.49 percent, Taraba N5.7 billion compared with FAA of N66 billion representing 8.70 percent and Ebonyi N5.1 billion compared with FAA of N57.8 billion representing 8 percent.
Meanwhile, Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N333 billion compared with FAA of N201 billion which translates to 165 percent in the 12 months of 2017.
It was followed by Ogun State which generated IGR of N74.83 billion compared with FAA of N69 billion representing 107 percent.
Others with impressive IGR include Rivers with N89 billion compared with FAA of N178 billion representing 50 percent; Edo with IGR of N25 billion compared with FAA of N75 billion representing 33 percent. Kwara State however with a low receipt from the Federation Account has greatly improved in its IGR of N19 billion compared with FAA of N61 billion representing 32 percent while Enugu with IGR of N22 billion compared with FAA of N69 billion representing 32 percent.
Kano generated N42 billion compared with FAA of N143 billion representing 30 percent while Delta State earned N51 billion IGR against FAA of N175 billion representing 29 percent.
The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20 percent. They are Kwara, Kano, and Kaduna States.
Meanwhile, 10 states in the South recorded over 20 percent IGR in 2017. They are Lagos, Ogun, Rivers, Edo, Enugu, Delta, Cross River, Anambra, Oyo and Abia States.
The states with the poorest IGR of less than 10 percent in the South are Bayelsa, Ebonyi, Osun, Ekiti, Akwa-Ibom and Imo States while in the North; Gombe, Zamfara, Taraba, Adamawa, Jigawa, Niger, Katsina, Kebbi, Borno, Yobe and Bauchi States.
Meanwhile, the IGR of the respective states can improve through aggressive diversification of the economy to productive sectors rather than relying on the monthly Federation Account revenues that largely come from the oil sector.
By Adedapo Adesanya
The chief executive of HBM Nigeria Plc (formerly Lafarge Africa), Mr Lolu Alade-Akinyemi, said the cement producer is expected to add 4.5 million tonnes to its production capacity by January 2027.
HBM Nigeria Plc is positioning itself for stronger long-term competitiveness, market leadership and job creation as it accelerates expansion projects.
The transition to HBM Nigeria marks a new phase of growth, driven by operational excellence, sustainability, innovation, and infrastructure development, while maintaining its long-standing commitment to Nigeria’s construction sector.
Mr Alade-Akinyemi, speaking recently in Lagos, said the ongoing expansion of the company’s Ashaka and Sagamu plants would significantly boost local production, create employment opportunities, and support businesses across its value chain.
“We recently announced the expansion of the Sagamu plant in Ogun State and the Ashaka plant in Gombe State. Hopefully, in January 2027, we will commission both plants, adding 4.5 million tonnes to our capacity. Traditionally, building a new plant takes about three years, but this is one of the benefits of belonging to the Huaxin Group,” he said.
According to him, the projects will generate employment, create opportunities for young people and women, strengthen local suppliers and contractors, and contribute further to Nigeria’s economic growth.
“There are many vacancies we are trying to fill in Sagamu and Ashaka. Beyond direct employment, we are creating opportunities for small businesses, developing suppliers and supporting local contractors. This is an exciting period because it will deliver significant benefits to Nigeria,” he said.
Mr Alade-Akinyemi noted that while the company’s corporate identity had changed following its acquisition by Huaxin Building Materials Group, its core values and commitment to customers, host communities, employees and shareholders remain unchanged.
He said HBM Nigeria traces its roots to 1959 as West African Portland Cement Company (WAPCO), with its first cement plant commencing operations in Ewekoro, Ogun State, in 1961.
Since then, he said, the company has grown into one of Nigeria’s leading building solutions providers with integrated plants in Ewekoro, Sagamu, Ashaka and Mfamosing.
He added that the company, which became publicly listed in 1979, has continued to expand through acquisitions and transformation while maintaining high product quality, innovation and responsible operations.
Highlighting the strengths of its parent company, Alade-Akinyemi described Huaxin Building Materials as a globally recognised building materials manufacturer founded in 1907 and headquartered in Wuhan, China, with operations across 16 regions in China and 14 countries worldwide.
He said Huaxin’s engineering expertise and focus on research and development would strengthen HBM Nigeria’s operations and help close engineering skills gaps in the country.
“As HBM Nigeria, we are strategically positioned for long-term competitiveness and stronger market leadership while reinforcing our commitment to supporting Nigeria’s infrastructure development and economic progress after more than six decades of industry leadership,” he said.
He also said sustainability would remain central to the company’s operations, noting that it had introduced lower-carbon products and continued to invest in environmentally friendly production processes.
By Adedapo Adesanya
The Federation Account Allocation Committee (FAAC) distributed about N2.550 trillion from the revenue generated by the nation in June 2026 to the three tiers of government after its July meeting in Abuja.
A statement signed by the Director of Press in the Office of the Accountant General of the Federation, Mr Bawa Mokwa, “The N2.550 trillion total distributable revenue comprised N1.809 trillion in distributable statutory revenue and N740.724 billion in distributable Value Added Tax (VAT) revenue.”
It was gathered that a total gross revenue of N4.500 trillion was available in June 2026, with deductions for the cost of collection amounting to N160.744 billion, and transfers and refunds at N1.789 trillion.
According to a communiqué after the gathering, gross statutory revenue of N3.700 trillion was received in June 2026, N1.049 trillion higher than the N2.651 trillion received in the preceding month, while gross revenue of N799.746 billion was generated from VAT, N56.058 billion higher than the N743.688 billion recorded in May 2026.
It was stated that from the N2.550 trillion total distributable revenue, the federal government received N923.438 billion, the state governments got N838.208 billion, while the local government councils were given N591.390 billion, with N197.610 billion allocated to the benefiting states as 13 per cent of mineral derivation revenue.
From the N1.809 trillion distributable statutory revenue, the federal government went away with N849.366 billion, states shared N430.810 billion, local councils took N332.136 billion, while the benefiting states got N197.610 billion as derivation revenue.
From the N740.724 billion distributable VAT earnings, the central government got N74.072 billion, the states received N407.398 billion, and the local government councils were allocated N259.253 billion.
The communiqué further stated that in June 2026, collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Royalties, Gas Flare Penalties, Rent, Mineral Oil Royalties (MOR), Value Added Tax (VAT), Import Duty, and Common External Tariff (CET) Levies increased significantly, while Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Mineral Royalties, and Fees declined considerably. Excise Duty recorded only a marginal increase.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) says the rollout of electronic invoicing (e-invoicing) will strengthen tax compliance, curb revenue leakages and improve transparency in tax administration as it moves to fully digitise the country’s tax system.
The Project Lead for the NRS e-Invoicing Project, Mr Mohammed Bawa, stated this at the DigiTax E-Invoicing Compliance Breakfast Session held in Lagos on Wednesday.
The event, organised by DigiTax, an NRS-accredited e-invoicing platform, formed part of efforts to support the agency’s ongoing education and sensitisation campaign on the e-invoicing mandate.
Mr Bawa said the initiative aligns with global trends in tax digitisation and is expected to help improve Nigeria’s tax-to-GDP ratio, which remains one of the lowest in Africa.
According to him, the system will provide the NRS with greater visibility into transactions across sectors, formalise activities within the informal economy and standardise invoice formats nationwide using globally recognised invoice schemas.
He added that e-invoicing would improve operational efficiency for both businesses and tax authorities while supporting the NRS’ transition from manual and electronic tax administration processes to a fully automated system-to-system interaction model.
Mr Bawa noted that the legal framework for implementation is backed by the Nigeria Tax Administration Act, which prescribes penalties for non-compliance.
He disclosed that the NRS has completed onboarding large taxpayers and is preparing to enforce compliance with defaulting entities.
According to him, medium taxpayers are expected to begin compliance in the third quarter of 2026, while onboarding of emerging taxpayers will commence in 2027, with full adoption targeted for all taxpayers by the end of 2028.
Mr Bawa urged taxpayers yet to be onboarded onto the platform to begin the process and work with accredited service providers to ensure compliance.
On his part, Country Director of DigiTax Nigeria, Mr Olumide Akinsola, urged businesses to look beyond their internal systems and assess the compliance status of suppliers and counterparties.
He warned that businesses whose suppliers fail to transmit invoices through the MBS platform risk losing eligibility to claim Value Added Tax (VAT) input credits on such transactions, describing the resulting supply chain exposure as a significant commercial risk that many organisations have yet to quantify.
Mr Akinsola also announced the launch of DigiTax’s white paper, The State of E-Invoicing Readiness in Nigeria, which examines compliance adoption trends and the readiness gap across different taxpayer segments.
He added that DigiTax operates in Nigeria, Kenya, Zambia and the United Arab Emirates (UAE), noting that experience from those markets shows businesses that integrate early are better positioned to avoid disruptions when enforcement begins.
