Nigeria’s 36 states and the Federal Capital Territory recorded a 41.2% increase in total internally generated tax revenue, reaching N3.79 trillion in 2025. Pay-As-You-Earn (PAYE) taxes remained the primary driver, surging 40.3% to N2.64 trillion and accounting for nearly 70% of total tax collections. This growth is largely attributed to nationwide adjustments in public and private sector wages, following the implementation of the new national minimum wage and corporate salary revisions to combat inflation.