Most states in Nigeria derive over 50 per cent of their internally generated revenue (IGR) from Pay As You Earn (PAYE) with Lagos, Rivers and Delta states as top earners, data released by the National Bureau of Statistics (NBS) has shown.
The NBS recently updated its series on internally generated revenue (IGR) at state government level to include 2014.
Analysis of the numbers revealed that Lagos derived 55.6 per cent of its IGR from PAYE salary deductions, 3.4 per cent from direct assessment (of entrepreneurs), 1.7 per cent from road taxes and 39.3 per cent from all other sources.
In contrast, Rivers generated 76.7 per cent from PAYE, 5.9 per cent from assessment, 0.1 per cent from road tax and 17.3 per cent from other levies.
A further analysis of the NBS numbers showed that the five-year total for 2010-14 of N2.84 trillion was dominated by Lagos State (38.0% of the total), Rivers State (12.2%) and Delta State (7.0%).
Total IGR collected by the 36 states (excluding the Federal Capital Territory) in 2014 increased by 6.9 per cent to N708 billion.