Surge in Road Tax Revenue in Nigeria: A 63% Increase in 2023

According to the National Bureau of Statistics (NBS), Nigerians significantly increased their road tax payments in 2023, with total collections reaching approximately N40.14 billion. This marks a remarkable 63.36% increase from the previous year’s N24.57 billion, underscoring the growing role of road taxes in funding state finances.

Interestingly, the Federal Capital Territory did not generate any road tax revenue in 2023, which stands out amidst the overall growth.

Lagos State emerged as the leader in road tax collection, amassing N16.74 billion, representing 41.7% of the total national revenue. This achievement is notable given that Lagos collected no road tax revenue the previous year.

Some states exhibited impressive growth rates. Ebonyi State, for instance, saw an extraordinary increase of 3,804.32%, jumping from N72.95 million in 2022 to N2.85 billion in 2023. Rivers State also experienced substantial growth, with a 270.66% increase, collecting N830.01 million compared to N223.93 million the previous year.

In contrast, a few states faced significant declines in their road tax collections. Enugu State reported a staggering 95.12% drop, falling from N1.1 billion to just N53.47 million. Similarly, Katsina State saw a decline of 79.34%, with collections dropping from N141.81 million to N29.3 million. Niger State also experienced a 53.41% reduction, while Cross River’s collections fell by 62.54%.

These figures highlight the diverse landscape of road tax revenue across Nigeria, revealing both robust growth in certain areas and sharp declines in others.