If you’re interested in knowing if your state is among the top states in Nigeria that may not go bankrupt in next few years to come? Then, consider reading this post to the end. Interestingly, the states considered to be top richest might shock you.
Knowing the richest states in Nigeria is very important. Apart from the fact that it’ll show you if your state is going bankrupt in next few years to come or not, it’ll serve as an indicator to where you’ll site your next dream business. Or state you’ll relocate your family to for better life.
About 200 million people call Nigeria, home. And its economy is one of the Africa’s fastest-growing. The nation is divided into 36 states and the federal capital territory, each of which has distinct resources and features. The richest states in Nigeria contribute significantly to Nigeria’s economy and play a vital role in the country’s development
Based on the Gross Domestic product (GDP) of different states and other economic indicators, I’m about to share with you in this post, “top10 richest states in Nigeria”.
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Here is list of the top 10 richest state in Nigeria and their sources of revenue:
Lagos State ($136 billion)
Lagos State is the economic hub of Nigeria and the number #1 richest state in Nigeria. It has a GDP of $136 billion, which is higher than the GDP of many African countries. Lagos is home to several multinational corporations, financial institutions, and the busiest seaport in West Africa. The state generates a significant portion of Nigeria’s revenue, and it is known for its vibrant nightlife, beautiful beaches, and cultural landmarks.
Sources of Revenue:
Certainly! Here are some internal and external sources of revenue for Lagos State:
- Internally Generated Revenue (IGR): Lagos state generates a significant portion of its revenue from IGR, which is derived from taxes, fees, fines, levies, and other charges imposed on individuals, businesses, and other organizations operating within the state.
- Oil Revenue: Lagos state also benefits from Nigeria’s oil revenue, which is distributed among all the states based on their contribution to national oil production.
- Federal Allocation: Lagos state receives a share of the federal government’s revenue allocation to states, which is distributed based on a formula that takes into account population, land mass, and other factors.
- Grants and Loans: The state government also receives grants and loans from international organizations, foreign governments, and domestic financial institutions to fund development projects and other initiatives.
- Property Development: Lagos state generates revenue from property development projects, which include land sales, building permits, and lease agreements for government-owned properties.
- Investment Income: The state government invests in companies and financial instruments generating income from dividends, interest, and other investment returns.
Rivers State ($36 billion)
With a $36 billion GDP, Rivers State is the second-richest state in Nigeria. The state’s oil and gas sector, which makes a considerable economic contribution, is well-known. Two significant oil refineries, the Port Harcourt Refining Company, and the Eleme Petrochemicals Corporation, are located in Rivers State. The state’s agricultural industry is also growing, with substantial amounts of yam, cassava, and plantain cultivation.
Sources of Revenue:
- Oil and Gas Royalties: Rivers State is one of the largest oil-producing states in Nigeria, with substantial revenue generated from crude oil exploration and production activities.
- Taxes: The state generates revenue from taxes, including personal income tax, corporate tax, and value-added tax (VAT).
- Internally Generated Revenue (IGR): Rivers State also generates revenue through various IGR initiatives, such as property tax, tenement rate, land use charge, and market fees.
- Federal Allocation: Rivers state receives a share of the revenue from the Federation Account, which is distributed among the 36 states and the Federal Capital Territory based on a revenue allocation formula.
- Grants: The state also receives grants from the federal government and international organizations to support various projects and programs.
- Investments: Rivers State has investments in various sectors, including agriculture, manufacturing, and real estate, which generate revenue for the state.
- Fees and Levies: The state generates revenue from fees and levies charged for services such as issuance of licenses and permits, motor vehicle registration, and inspection, among others
Delta State ($16 billion)
Delta State is another oil-rich state in Nigeria, with a GDP of $16 billion. The state is home to several oil and gas companies, including Chevron, Shell, and NNPC. Delta State also has a thriving tourism industry, with its natural reserves and wildlife parks attracting tourists from all over the world.
Sources of Revenue:
- Oil and Gas: Delta State is one of the major oil-producing states in Nigeria. The revenue generated from the oil and gas industry accounts for a significant portion of the state’s total revenue.
- Agriculture: Delta State is also an agricultural hub with a wide variety of crops grown in the state, including oil palm, rubber, cassava, yam, and cocoa. The state is one of the largest producers of oil palm in Nigeria, and revenue generated from agricultural activities also contributes significantly to the state’s revenue.
- Taxes: Delta State generates revenue from various taxes. The state government has implemented several policies and initiatives aimed at increasing tax compliance and revenue collection, including the use of technology to improve tax administration.
- Internally Generated Revenue (IGR): Delta State generates revenue from various sources within the state, including fees for government services, rent from government-owned properties, fines, and penalties.
- Grants and Aids: The state government receives grants and aid from the federal government, international organizations, and other donor agencies. These funds are usually used to finance specific projects and programs in the state.
- Investment: Delta State also generates revenue from investments in various sectors, including real estate, hospitality, and tourism. The state government has initiated several investment-friendly policies to attract foreign investors.
Oyo State ($15 billion)
Oyo State is the fourth richest state in Nigeria, with a GDP of $15 billion. The state is known for its agricultural industry, with crops such as cocoa, yam, and maize being cultivated in large quantities. Oyo State also has a thriving educational sector, with several universities and colleges located within its borders.
Sources of Revenue:
- Internally Generated Revenue (IGR): The revenue generated by the state government from taxes, levies, fees, and charges imposed on individuals and business. Oyo State has been working to increase its IGR by improving tax collection and administration processes. In 2020, the state generated about ₦38.04 billion from IGR.
- Agriculture: Oyo State is known for its vast agricultural resources, including cocoa, palm oil, cashew nuts, and yam. The state generates revenue from the sale of these agricultural products both locally and internationally.
- Mining: The state is also rich in mineral resources, such as tantalite, tourmaline, and granite. The state generates revenue from the mining and sale of these minerals.
- Tourism: Oyo State is home to several tourist attractions, such as the Ibadan Zoological Garden, Mapo Hall, and the Bower’s Memorial Tower. The state generates revenue from tourism activities such as hotel bookings, transportation, and tour guide services.
- Education: The state has several higher institutions of learning, including the University of Ibadan, which attracts students from within and outside the state. The state generates revenue from tuition fees, research grants, and other academic-related activities.
Imo State ($14 billion)
Imo State is the fifth richest state in Nigeria, with a GDP of $14 billion. The state is known for its natural resources, including crude oil, natural gas, and limestone. Imo State also has a thriving manufacturing sector, with industries such as textiles, cement, and soap production contributing significantly to its economy.
Sources of Revenue:
- Oil and Gas Revenue: Imo State, like most states in Nigeria, receives a share of the revenue generated from oil and gas exploration in the country. The state government collects royalties and taxes on oil and gas production within its territory.
- Agriculture: Agriculture is a major source of revenue for Imo State. The state is endowed with fertile soil and a conducive climate for farming. The government therefore generates lots of income from it. Major crops produced in Imo State include cassava, yam, rice, maize, oil palm, and cocoa.
- Education: Imo State is known for its high-quality education system, which attracts students from all over Nigeria and beyond. The state has several universities, polytechnics, and colleges of education, which generate revenue from tuition fees, research grants, and consultancy services.
- Manufacturing: Imo State has a growing manufacturing sector, which contributes to the state’s revenue. The government provides incentives to manufacturers to set up factories in the state, and also invests in infrastructure such as roads, electricity, and water supply to support manufacturing activities.
- Tourism: Imo State has several tourist attractions, including natural landmarks, cultural festivals, and historical sites. The government promotes tourism by investing in the development of tourist facilities and marketing the state’s tourist destinations to local and international visitors.
- Mining: Imo State has deposits of minerals such as limestone, clay, and gypsum, which are used in construction and manufacturing. The state government collects royalties and taxes on mining activities, and also promotes value addition through local processing and export.
- Real Estate: Imo State has a thriving real estate industry, driven by the growing demand for residential and commercial properties. The government generates revenue from property taxes, land use charges, and building permit fees.
Kano State ($12 billion)
Kano State is the sixth richest state in Nigeria, with a GDP of $12 billion. The state is known for its agricultural industry, with crops such as wheat, rice, and maize being cultivated in large quantities. Kano State also has a thriving textile industry, with textiles such as cotton and silk being produced in large quantities.
Sources of Revenue:
- Agriculture: Kano State is known as the “center of commerce” due to its large agricultural sector. The state is one of the largest producers of groundnuts, wheat, cotton, and rice in Nigeria. The government provides subsidies, loans, and other forms of support to farmers to boost production, and also invests in irrigation, mechanization, and agro-processing to add value to agricultural products.
- Trade and Commerce: Kano State has a vibrant trade and commerce sector, with a large market known as “Kantin Kwari” where different goods and services are bought and sold. The government generates revenue from market taxes, fees, and licenses.
- Manufacturing: Kano State has a growing manufacturing sector, which includes industries such as textiles, leather, and food processing. The government provides incentives to manufacturers to set up factories in the state and invests in infrastructure such as roads, electricity, and water supply to support manufacturing activities. Revenue is generated from taxes, fees, and levies on manufacturing activities.
- Mining: Kano State has mineral resources such as gold, marble, limestone, and gypsum. The government collects royalties and taxes on mining activities and also promotes value addition through local processing and export.
- Transportation: Kano State is a transportation hub, with a large airport and several major highways connecting it to other states and countries. The government generates revenue from tolls, levies, and taxes on transportation activities.
Edo State ($11 billion)
With a $11 billion GDP, Edo State ranks as the seventh-richest state in Nigeria. With numerous oil and gas businesses operating inside its borders, the state is well renowned for its oil and gas industry. Moreover, Edo State’s agricultural sector is growing, with substantial amounts of cassava, yam, and plantain cultivation.
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Sources of Revenue:
- Agriculture: Agriculture is one of the major sources of revenue for Edo State. The state is known for the production of crops such as palm oil, rubber, cocoa, cassava, yam, and vegetables. The state government has initiated various programs and policies to support agriculture, such as providing access to credit facilities, training, and extension services to farmers.
- Oil and Gas: Edo State is endowed with mineral resources such as crude oil and natural gas, which are major sources of revenue for the state. The state has several oil and gas fields, including the Oredo field, which is one of the largest onshore oil fields in Nigeria. The state government earns revenue from oil and gas through taxes, royalties, and other fees.
- Tourism: Edo State has a rich cultural heritage and is home to several tourist attractions such as the Benin City Walls and moats, the National Museum, the Okomu Wildlife Sanctuary, and the Ogba Zoo. The state government has invested in developing these attractions which the state earns revenue from tourism through entry fees, accommodation, and other services offered to tourists.
- Education: Edo State is home to several higher institutions of learning, such as the University of Benin, Ambrose Alli University, and the Federal Polytechnic, Auchi. These institutions attract students from within and outside the state, who pay tuition fees and other charges to the institutions. The state government also earns revenue from education through taxes and other fees charged on educational institutions.
- Commerce and Industry: Edo State is home to several industrial and commercial activities, such as textile manufacturing, food processing, and trading. The state government earns revenue from commerce and industry through taxes, levies, and other fees charged on businesses operating within the state.
Akwa Ibom State ($10 billion)
With a $10 billion GDP, Akwa Ibom State is the eighth-richest state in Nigeria. With numerous oil and gas businesses operating inside its borders, the state is well renowned for its oil and gas industry. Due to its natural reserves and animal parks, Akwa Ibom State also boasts a strong tourism industry that draws visitors from all over the world.
Sources of Revenue:
- Crude Oil and Gas Revenue: Akwa Ibom is one of the largest oil and gas-producing states in Nigeria, and it generates significant revenue from the sale of crude oil and gas. The state’s oil and gas resources are mainly concentrated in the offshore areas and are managed by the Nigerian National Petroleum Corporation (NNPC). The state receives a share of the revenue generated from the sale of crude oil and gas through the federal allocation system.
- Agriculture: Akwa Ibom State has significant agricultural potential and is known for the production of crops such as palm oil, cassava, cocoa, and rubber. Agriculture is a significant source of revenue for the state, as the government encourages farmers through incentives and subsidies to produce more crops. The government also collaborates with the private sector to establish agro-based industries to process agricultural products and generate additional revenue.
- Tourism: Akwa Ibom State is home to several tourist attractions, including the Ibeno Beach, Ibom Connection, and Ibom Tropicana Resort. The state government has invested significantly in developing the tourism sector, and this has led to an increase in the number of visitors to the state.
- Education: The state has several higher institutions, including Akwa Ibom State University and the University of Uyo, which attract students from within and outside the state. The state government generates revenue from the sale of education-related services, such as school fees, accommodation, and textbooks.
- Real Estate: Akwa Ibom State has a growing real estate market, driven by the state’s expanding economy and increasing population. The government generates revenue through the sale of land, property taxes, and fees for building permits.
Cross River State ($9 billion)
Cross River State is the ninth richest state in Nigeria, with a GDP of $9 billion. The state is known for its tourism industry, with its beautiful beaches, wildlife reserves, and cultural festivals attracting tourists from all over the world. Cross River State also has a thriving agricultural sector, with crops such as cocoa, rubber, and oil palm being cultivated in large quantities.
Kwara State ($8 billion)
Kwara State is the tenth richest state in Nigeria, with a GDP of $8 billion. The state is known for its agricultural industry, with crops such as cassava, yam, and maize being cultivated in large quantities. Kwara State also has a thriving manufacturing sector, with industries such as textiles, leather, and food processing contributing significantly to its economy.
Sources of Revenue:
- Agriculture: Kwara State is known for its agricultural resources and produces crops such as yam, cassava, maize, rice, and sugarcane. The state could potentially earn revenue through the sale of these crops.
- Solid minerals: Kwara State has large deposits of mineral resources, including limestone, marble, gold, and tantalite. These minerals could be extracted and sold for revenue.
- Livestock farming: Kwara State has a large population of livestock, including cattle, sheep, and goats. The state could earn revenue through the sale of livestock and dairy products.
- Education: Kwara State has several tertiary institutions, including the University of Ilorin and Kwara State Polytechnic. These institutions could potentially generate revenue through tuition fees and other academic services.
- Taxes: Like other states in Nigeria, Kwara State could earn revenue through various taxes, including income tax, sales tax, and property tax.
- Federal allocation: Kwara State, like other states in Nigeria, receives a share of the federal government’s revenue through a process called federal allocation. This revenue could be used to fund various state projects and services.
Conclusion
In conclusion, Nigeria is a country blessed with abundant natural resources and a large population, making it one of the fastest-growing economies in Africa. The 10 richest states in Nigeria in 2023 are Lagos, Rivers, Delta, Oyo, Imo, Kano, Edo, Akwa Ibom, Cross River, and Kwara, with each state having its unique characteristics and resources. These states contribute significantly to Nigeria’s economy and play a vital role in the country’s development.