The National Bureau of Statistics (NBS) has released a report indicating that just 20 out of Nigeria’s 36 states generated revenue from local governments in 2023.
Sixteen states, along with the Federal Capital Territory (FCT), did not report any revenue from local government sources throughout the year, signaling a potential challenge for local government funding and autonomy.
The report highlighted that Katsina, Benue, Sokoto, and Adamawa also failed to report any local government revenue for the second consecutive year, having recorded no contributions in 2022 either. This lack of revenue generation comes amid calls for greater local government autonomy, with advocates stressing the role of local councils in addressing community needs and providing essential grassroots services.
In a significant move toward financial independence, the Supreme Court ruled in July that funds allocated to local governments should go directly to them from the federation account, bypassing state control. This decision aims to support local councils in achieving greater financial self-sufficiency.
Among the states that generated revenue, Lagos led with N10.49 billion, followed by Ebonyi at N6.13 billion. However, the collective revenue raised by the 20 states in 2023 totaled N37.05 billion—a decline from the N48.7 billion reported in 2022 by 29 states.
Here’s a summary of the top revenue-generating states in 2023:
- Lagos: N10.49 billion
- Ebonyi: N6.13 billion
- Kwara: N3.35 billion
- Oyo: N3.11 billion
- Jigawa: N2.89 billion
At the lower end, Osun, Borno, and Imo reported the least contributions at N204.42 million, N213.12 million, and N215.34 million, respectively. The NBS report raises critical questions about the fiscal health of local governments and underscores the need for increased financial autonomy and sustainable revenue generation at the local level.
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