Nigeria’s road tax revenue soars 63% in 2023, reflecting increasing financial strain on citizens

The National Bureau of Statistics (NBS) has revealed a significant rise in road tax payments by Nigerians, with state governments collecting approximately 63% more in 2023 compared to the previous year. This increase underscores the growing reliance on road taxes as a critical source of revenue for states.

According to the recently published Internally Generated Revenue report, total road tax revenue reached N40.14 billion in 2023, a substantial rise from N24.57 billion collected in 2022. Notably, the Federal Capital Territory did not generate any road tax revenue during this period.

Lagos State led the nation in road tax revenue, amassing N16.74 billion—41.7% of the total. Remarkably, the state had collected no road tax revenue in 2022, highlighting its rapid fiscal recovery.

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Ebonyi State recorded an extraordinary growth rate of 3,804.32%, with collections jumping from N72.95 million in 2022 to N2.85 billion in 2023. Other states also experienced notable increases; Rivers State saw a 270.66% rise, collecting N830.01 million compared to N223.93 million the previous year.

Sokoto State’s revenue grew by 41.22% to N194.66 million, while Yobe State experienced a 30.4% increase, collecting N81.88 million.

Conversely, some states faced significant declines in road tax revenue. Enugu State reported a staggering 95.12% drop, from N1.1 billion to N53.47 million, while Katsina State’s revenue plummeted 79.34% from N141.81 million to N29.3 million. Niger State also experienced a reduction of 53.41%, falling to N190.49 million from N408.83 million. Cross River saw a 62.54% decrease, with collections dropping from N3.26 billion to N1.22 billion.

This report indicates not only the growing fiscal pressures on citizens but also highlights the varying effectiveness of tax collection across different states in Nigeria.