Reported by Weng Patrick Atokor l Journalist at Weng Global
Kaduna State generated nearly ₦220 billion in internally generated revenue between 2023 and 2025, as the government and its revenue authorities increasingly relied on taxpayer engagement, technology, wider tax coverage and stakeholder dialogue to improve collections.
The figure is derived from annual revenue reported by the Kaduna State Internal Revenue Service (KADIRS): ₦62 billion in 2023, ₦71 billion in 2024 and about ₦85 billion in 2025. Together, those figures amount to approximately ₦218 billion.
The development has drawn attention to a broader question facing Nigerian states: how can governments increase domestic revenue without placing excessive pressure on existing taxpayers?
Kaduna’s approach has increasingly focused on expanding the number of taxpayers within the formal system, improving administration and using dialogue to encourage compliance.
What does the ₦220bn figure mean?
The ₦220 billion figure should not be interpreted as a single tax payment or a one-time collection.
Rather, it represents approximately the combined internally generated revenue recorded by Kaduna over the three-year period from 2023 through 2025.
KADIRS reported that revenue increased from ₦62 billion in 2023 to ₦71 billion in 2024 before reaching about ₦85 billion in 2025.
The progression is significant because it shows that the state’s annual collections increased each year during the period.
By 2025, KADIRS said the state was collecting an average of about ₦7 billion monthly, compared with substantially lower monthly collections before 2023.
Why dialogue became important
Tax collection is not only about enforcement.
For governments, revenue authorities and taxpayers, the relationship can determine whether people voluntarily comply with tax obligations or resist them.
Kaduna’s recent tax strategy has placed greater emphasis on engagement with businesses, citizens, professional groups, government agencies and other stakeholders.
During the 2025 KADIRS Tax Dialogue, officials discussed changes arising from Nigeria’s tax reforms and how they could be implemented at the state level.
The dialogue was designed to help stakeholders understand changes in tax administration and identify practical ways of improving compliance.
This approach reflects a wider shift in tax administration: rather than depending primarily on physical enforcement, authorities can use education, digital systems, data and engagement to make compliance easier.
Technology is another part of the strategy
Kaduna has also invested in technology as part of its revenue administration.
KADIRS has highlighted the PAYKADUNA platform as one of the tools being used to improve transparency and efficiency in tax administration.
Digital systems can make it easier for taxpayers to access information, make payments and interact with revenue authorities.
For government, digital records can also improve the ability to identify taxpayers, monitor collections and reduce opportunities for leakages.
The objective is therefore not simply to collect more money but to build a system in which revenue collection can be tracked and administered more systematically.
Expanding the tax base
One of the most important elements of Kaduna’s strategy has been widening the tax net.
In a 2026 interview, KADIRS Executive Chairman Jerry Adams said the state moved away from relying mainly on extracting more revenue from existing taxpayers and instead focused on bringing more eligible taxpayers into the system.
He said no new taxes or levies had been introduced since Governor Uba Sani assumed office in 2023, while the strategy concentrated on horizontal expansion of the tax base.
In simple terms, this means trying to increase revenue by getting more people and businesses who are legally liable to pay taxes into the formal system, rather than continually increasing the burden on those already paying.
That distinction is important for understanding the state’s revenue growth.
From ₦58bn to ₦85bn
Before 2023, the highest annual revenue collection recorded by Kaduna was around ₦58 billion, according to KADIRS.
The service reported ₦62 billion in 2023, ₦71 billion in 2024 and ₦85 billion in 2025.
The figures show an increase of about ₦27 billion between the pre-2023 benchmark of ₦58 billion and the 2025 collection of ₦85 billion.
KADIRS has attributed the growth to several factors, including political support for the revenue service, collaboration with government ministries, departments and agencies, improved administration, technology and greater taxpayer compliance.
However, revenue figures should be understood in context.
An increase in internally generated revenue does not by itself establish how efficiently the money is spent, whether taxpayers consider the system fair, or whether the additional revenue is sufficient to meet the state’s development needs.
Those are separate questions requiring separate evidence.
What role does public trust play?
Tax compliance is closely connected to public confidence.
When citizens understand what they are required to pay, can access convenient payment systems and believe that public institutions are functioning transparently, voluntary compliance can become easier.
Kaduna officials have repeatedly linked improved compliance to increased engagement and confidence in the tax administration process.
At the 2025 tax dialogue, Governor Uba Sani, represented by Deputy Governor Hadiza Balarabe, stressed the importance of fairness, transparency and taxpayer engagement.
The administration also said taxation should be based on genuine income and should not unnecessarily punish people living in poverty.
That principle is significant because governments face a difficult balance: they need sufficient domestic revenue to fund public services, but excessive or poorly administered taxation can place pressure on households and businesses.
The problem of multiple taxation
For businesses operating in Nigeria, multiple taxation and overlapping levies have long been concerns.
Kaduna’s revenue authorities have said stakeholder engagement and collaboration with local governments and government agencies have been used to reduce the problem.
KADIRS also said it had taken action against illegal revenue collectors and unauthorised collection activities.
Reducing unauthorised collections can have two effects.
First, it can protect businesses and residents from paying money to individuals or organisations that do not have legal authority to collect it.
Second, it can help ensure that legitimate government revenue reaches the appropriate public institutions.
What does this mean for Kaduna?
The revenue increase gives Kaduna greater capacity to finance government programmes from internally generated resources.
But higher revenue also creates greater expectations around public financial management.
The state’s ability to generate revenue must therefore be considered alongside questions about expenditure, accountability, service delivery and the effectiveness of public investment.
Kaduna’s Finance Ministry says its role includes managing state financial resources, developing fiscal policies and supporting sustainable economic growth.
The wider significance is that internally generated revenue gives states a source of funding that is less directly dependent on federal allocations.
For a state with substantial spending responsibilities in areas such as education, healthcare, infrastructure, security and social services, stronger domestic revenue can provide additional fiscal room.
The next stage: a bigger revenue target
Kaduna’s revenue authorities have already set their sights beyond the ₦85 billion recorded in 2025.
In 2026, KADIRS said the state was trending towards annual collections of about ₦120 billion, with monthly revenue approaching ₦10 billion.
That would represent another substantial increase from the 2025 level.
The challenge, however, is whether the growth can be sustained without undermining taxpayer confidence or placing disproportionate pressure on households and businesses.
The state’s strategy therefore faces two simultaneous tests: expanding the tax base while maintaining a tax system that taxpayers consider understandable, accessible and fair.
Why the Kaduna experience matters
Kaduna’s experience illustrates a broader issue in Nigeria’s fiscal system.
States need reliable domestic revenue to reduce dependence on transfers and strengthen their ability to plan and deliver public services.
At the same time, taxpayers need predictable rules, efficient administration and confidence that the system is being managed responsibly.
The nearly ₦220 billion generated between 2023 and 2025 is therefore more than a headline figure. It represents three years of increasing annual collections and provides a case study in how tax administration, technology, stakeholder engagement and expansion of the tax base can interact.
Whether the model remains sustainable will depend on what happens next: the quality of tax administration, the treatment of taxpayers, the continued use of data and technology, and how effectively the resulting revenue is translated into public services.
For Kaduna, the next benchmark is already higher. The state is targeting revenue around the ₦120 billion level in 2026, meaning the next phase will test whether the recent growth can continue while maintaining public trust and compliance.
The key takeaway
Kaduna’s reported ₦220 billion in revenue between 2023 and 2025 is essentially the combined total of approximately ₦62 billion in 2023, ₦71 billion in 2024 and ₦85 billion in 2025.
The state’s experience shows that revenue growth is not solely about introducing new taxes. It can also involve expanding the taxpayer base, improving collection systems, using technology, reducing unauthorised collections and engaging stakeholders.
For citizens and businesses, the important issue going forward will be whether higher revenue collection is accompanied by transparent administration, reasonable compliance requirements and visible improvements in public services.
That is where the real significance of Kaduna’s revenue strategy will ultimately be measured.
Weng Global – Stories beyond borders
Sources
- Kaduna State Ministry of Finance — official information on the ministry and Commissioner for Finance Ibrahim Tanko Mohammed.
- Punch — reporting on Kaduna’s 2025 internally generated revenue and KADIRS’ account of revenue growth.
- Punch — report on KADIRS’ 2025 revenue projection and tax dialogue.
- BusinessDay — reporting on Kaduna’s tax reforms, stakeholder engagement and revenue administration.
