States’ IGR soars 34% to N2.43tn despite economic hardship

Nigerian states have seen a significant 34% surge in their Internally Generated Revenue (IGR), reaching N2.43tn in the first half of 2026, up from N1.815tn in the comparable period of 2024. This expansion of state-level revenue streams comes at a time when households face intensifying economic pressures.

The findings, based on data from 35 states excluding Rivers, highlight the growing financial capacity of sub-national governments. This increase in revenue is occurring alongside substantial allocations from the Federation Account and savings derived from the removal of petrol subsidies. However, this financial uplift has intensified scrutiny on how state governments are deploying these additional resources.

Analysts and stakeholders are demanding greater transparency and evidence of how these funds translate into tangible projects and programs that benefit citizens. The concern is amplified by a World Bank report indicating a rise in poverty, with the proportion of Nigerians living below the poverty line increasing from 56% in 2023 to 63% in 2025, affecting approximately 140 million people.

This widening disparity between government revenue and citizens' living conditions has sparked concerns about the spending priorities of governors and local government chairmen. Experts urge for increased fiscal discipline, stronger accountability, and a greater focus on productive capital investments that can stimulate economic activity, create jobs, and improve living standards.