National Bureau of Statistics data shows road tax collections across 36 states fluctuated significantly over three years.
Data from the National Bureau of Statistics reveals that the 36 states in Nigeria generated a cumulative N113.94bn from road taxes between 2023 and 2025. This revenue stream comes from daily levies paid by commercial transporters operating within various states across the country, according to information published by punchng.
The nationwide collections stood at N40.14bn in 2023 before dropping sharply to N23.92bn in 2024. Collections later rebounded significantly to reach N49.88bn in 2025, according to official Internally Generated Revenue reports analyzed from state records.
The sharp dip in 2024 was largely driven by the absence of reported figures from Lagos State for that specific year. The Joint Revenue Board compiled these official sub-national submissions alongside the Federal Capital Territory data.
Lagos Leads State Road Tax Generation
Lagos State dominated nationwide collections despite missing data for 2024, accounting for N33.61bn across the two years it reported. The state generated N16.74bn in 2023 and N16.87bn in 2025, making up roughly 29.5 per cent of the national total over the period.
Delta State emerged as the highest collector outside of Lagos, accumulating N8.64bn across the three-year window. Other top-performing states included Ondo with N5.99bn, Ogun with N5.49bn, Edo with N5.32bn, and Cross River with N5.28bn in cumulative road tax revenue.
Substantial Increases Recorded In 2025
Several states witnessed massive jumps in their road tax revenues during the 2025 fiscal year. Bauchi recorded a staggering surge of 357.32 per cent, pushing collections from N413.51m in 2024 up to N1.89bn in 2025.
Nasarawa experienced a similar growth rate of 357.23 per cent, rising from N226.10m to N1.03bn. Conversely, states like Kebbi and Katsina saw steep declines in their annual collections over the same timeframe.
Lowest Collectors And Broader Tax Context
Katsina recorded the lowest cumulative road tax collection over the three years at N183.10m, followed closely by Yobe at N309.04m and Bayelsa at N319.70m. These receipts formed part of broader state tax revenues classified by the National Bureau of Statistics.
Total Internally Generated Revenue across the 36 states and the Federal Capital Territory reached N5.15tn in 2025, marking a 40.93 per cent increase from the previous year. Tax revenue accounted for 73.64 per cent of that total.
Ban On Cash Collection And Roadblocks
In a related policy shift, the Federal Government formally prohibited cash collection of taxes and banned roadblocks for revenue enforcement. Executive Secretary of the Joint Revenue Board, Mr Olusegun Adesokan, announced the framework to eliminate coercive and fragmented tax practices.
The Joint Revenue Board also partnered with the Nigerian Police Force to combat illegal tax collection and dismantle unauthorized roadblocks. These regulations aim to streamline sub-national tax administration across the country.
Frequently Asked Questions
How much did Nigerian states generate from road taxes between 2023 and 2025?
The 36 states generated a cumulative N113.94bn from road taxes between 2023 and 2025, according to National Bureau of Statistics data.
Which state generated the highest road tax revenue in Nigeria?
Lagos State generated the highest road tax revenue, bringing in N33.61bn across the two years it reported figures within the three-year period.
What new regulations affect tax collection on Nigerian roads?
The Federal Government formally banned cash collection of taxes and the mounting of roadblocks for revenue enforcement to end fragmented tax practices.
