Nigeria’s rising transport fares cannot be attributed solely to the high cost of petrol. A recent report reveals that road taxes collected by state governments surged by 63% in 2023, highlighting their growing contribution to state revenues and the impact on overall transportation costs.
Data from the National Bureau of Statistics’ Internally Generated Revenue (IGR) report shows that road tax collections across Nigeria climbed to N40.14 billion in 2023, up from N24.57 billion in 2022. This increase underscores the significant role road taxes now play in state finances.
Lagos State led in revenue generation from road taxes, collecting N16.74 billion, which accounts for 41.7% of the national total. Meanwhile, Ebonyi State saw the steepest increase, with road tax revenue surging by 3,804.32%, rising from N72.95 million in 2022 to N2.85 billion in 2023.
Interestingly, the Federal Capital Territory (FCT) recorded no road tax revenue for the year, marking it as an outlier amid nationwide increases.
The growth in road taxes across states points to a broader impact on transportation costs, as higher road taxes contribute to the expenses borne by transport operators and, consequently, by passengers.
