Despite noticeable increase in Federation Account Allocation Committee’s (FAAC) disbursements to the three tiers of government in the last three years, the 36 states and the Federal Capital Territory (FCT) appear to be doubling down aggressively on Internally Generated Revenue (IGR) in 2026 to meet budget expenditures totalling over 30.728 trillion.

Findings by New Telegraph showed that the governors in their individual budget presentations emphasised the need to boost their IGR in order to go far with scheduled infrastructure projects.

Outside of the states’ IGR, the available income source to sub-national governments is the monthly allocation from FAAC and borrowing. Over time, experience shows allocations from FAAC alone are grossly inadequate in covering states’ operating expenses.

The reliance on internally generated revenue by the governors has often times pitched them against the people as new revenue targets are not only put in place but more revenue generating platforms also introduced.

According to 2023/2024 data from the National Bureau of Statistics (NBS) and other financial trackers, Lagos State has consistently leads Nigeria’s revenue generation, followed by the Federal Capital Territory (FCT) and Rivers State, with Ogun, Delta, and Edo also ranking high in Internally Generated Revenue (IGR).

Key revenue-generating states typically include Lagos, FCT, Rivers, Ogun, Delta, Edo, Kaduna, Kwara, Oyo, and Akwa Ibom, though rankings shift slightly with different reporting periods and methods (like IGR vs. VAT). A report in October last year showed that Lagos State kept its crown as Nigeria’s biggest sub-national revenue generator in 2024, as the National Bureau of Statistics released the Internally Generated Revenue at State Level 2024 report.

According to the report, by NBS, 36 states and the Federal Capital Territory together produced N3.6 trillion in IGR. This represents a 49.7 per cent rise from N2.43 trillion in 2023. In the current year, the governors are strengthening their commitment to improve on their IGR. In the 2026 fiscal year, Ogun State Governor, Dapo Abiodun, proposed N1.669 trillion appropriation Bill. It was passed by the State’s Assembly on December 3, 2025.

Titled the “Budget of Sustainable Legacy,” it represents a 63 per cent increase over the N1.054 trillion budget for 2025. In 2026, Ogun state put Internal Revenue (IGR) at N509.88 billion. This covers N250 billion from the Ogun State Internal Revenue Service (OGIRS). Of the N884 billion 2026 budget estimate proposed by Ebonyi State Governor, Francis Nwifuru, entitled “Budget of Actualization and Hope” for 2026, the budget focuses heavily on infrastructure development.