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REPORTS · BUDGET

Budget performance

The annual Appropriation Law sets a revenue target for each head and each collecting agency. This page reports performance against those targets — including the heads that under-performed, and why.

How targets are set and measured

Each year the State Appropriation Law contains a revenue estimate by head. Those estimates are built from the previous year’s outturn, the enumeration pipeline, any rate change gazetted for the year and the expected effect of specific measures — a new collection channel, an audit programme, a revaluation. The Service holds the aggregate target, and each director holds the share attributable to their directorate.

Performance is reported monthly to the Board and quarterly to the State House of Assembly Committee on Finance. A head performing below eighty per cent of its pro-rated target for two consecutive quarters is placed under review by the Board’s Technical & Rates Committee, which examines whether the shortfall is administrative, whether the estimate was unrealistic, or whether the head has ceased to be worth collecting.

That last question is asked more often than one might expect. Several small heads cost more to administer than they yield, and the Board has retired four of them since 2023. A revenue head that consumes more officer time than it produces is not a revenue head; it is a nuisance to the taxpayer and a cost to the State.

Performance against target by category, 2025

Category Target Actual Variance Attainment
Taxes ₦29.8 billion ₦31.4 billion +₦1.6 billion 105.4%
Motor Licensing ₦10.9 billion ₦11.2 billion +₦0.3 billion 102.8%
Fees ₦6.1 billion ₦5.9 billion −₦0.2 billion 96.7%
Levies ₦4.0 billion ₦4.4 billion +₦0.4 billion 110.0%
Licences ₦2.5 billion ₦2.6 billion +₦0.1 billion 104.0%
Rent on Government Property ₦1.5 billion ₦1.4 billion −₦0.1 billion 93.3%
Fines & Penalties ₦0.8 billion ₦0.9 billion +₦0.1 billion 112.5%
Earnings & Sales ₦0.4 billion ₦0.6 billion +₦0.2 billion 150.0%
Total ₦56.0 billion ₦58.4 billion +₦2.4 billion 104.3%

Performance by collecting MDA, 2025

MDA Target Actual Attainment Status
State Internal Revenue Service ₦29.8 billion ₦31.4 billion 105.4% Above target
Motor Licensing Authority ₦10.9 billion ₦11.2 billion 102.8% Above target
Ministry of Lands & Survey ₦4.9 billion ₦4.6 billion 93.9% Below target
Urban Planning & Development Authority ₦3.5 billion ₦3.8 billion 108.6% Above target
Signage & Advertisement Agency ₦1.9 billion ₦2.1 billion 110.5% Above target
Ministry of Health ₦1.7 billion ₦1.6 billion 94.1% Below target
Environmental Protection Agency ₦1.1 billion ₦1.2 billion 109.1% Above target
State Water Board ₦1.0 billion ₦0.9 billion 90.0% Below target
Ministry of Education ₦0.6 billion ₦0.7 billion 116.7% Above target
State Fire Service ₦0.4 billion ₦0.5 billion 125.0% Above target
Other MDAs ₦0.2 billion ₦0.4 billion 200.0% Above target

Where performance fell short, and why

Three areas under-performed. Land administration fees at the Ministry of Lands & Survey came in at 93.9 per cent, principally because the digitisation of the land register took two quarters longer than planned and title searches could not be processed at the expected rate during the migration. The backlog was cleared in the first quarter of 2026.

Health facility licensing reached 94.1 per cent. The shortfall is almost entirely accounted for by facilities that closed or ceased operating during the year and were not replaced on the register. This is a base issue rather than a collection issue, and the 2026 estimate has been revised accordingly.

Water Board receipts reached 90.0 per cent, reflecting the suspension of bulk commercial supply in two zones during main replacement works. Supply resumed in the fourth quarter.

Earnings and sales exceeded target by half, which is not a success: it reflects an unusually large auction of unserviceable Government vehicles rather than any recurring improvement, and the 2026 estimate has not been increased on the strength of it.

Cost of collection

Year Revenue collected Cost of collection As a percentage Change
2021 ₦29.6 billion ₦1.95 billion 6.6%
2022 ₦34.2 billion ₦2.05 billion 6.0% −0.6pp
2023 ₦41.9 billion ₦2.18 billion 5.2% −0.8pp
2024 ₦49.7 billion ₦2.29 billion 4.6% −0.6pp
2025 ₦58.4 billion ₦2.39 billion 4.1% −0.5pp

The full data

Monthly collections by category, MDA and local government area, downloadable under an open licence.