The Katsina State Government has announced an ambitious plan to increase its Internally Generated Revenue (IGR) to N140 billion annually by 2026, marking a major step toward financial sustainability and reduced dependence on federal allocations. The strategy, anchored on digital innovation, data integration, and community-driven participation, is expected to transform the state’s fiscal landscape and accelerate socio-economic development.
This was revealed by the Commissioner for Budget and Economic Planning, Alhaji Malik Anas, during the launch of the State of States 2025 Report by BudgIT in Abuja. His announcement was later reinforced through an official statement issued by Mr. Shuaibu Sada, spokesperson for the Katsina State Internal Revenue Service (KT-IRS), on Thursday.
From N10 Billion to N140 Billion: The Road to Fiscal Transformation
According to Anas, Katsina’s IGR has seen steady growth in recent years, increasing from N10 billion in 2021 to N24 billion in 2024. However, he noted that despite this progress, the figure remains far below the state’s actual revenue potential.
“Our administration is working to modernize the entire tax ecosystem,” he explained. “We are adopting a community-based revenue collection model that directly ties tax payments to visible development outcomes. When citizens see their taxes being used to fund projects in their communities, compliance improves naturally.”
The commissioner also disclosed that the government had launched an e-invoicing and e-payment system to facilitate real-time tax assessment, collection, and reconciliation, a move designed to minimize leakages and curb corruption in revenue administration.
Anas further noted that the state is in the process of establishing a comprehensive enterprise data warehouse, which will capture detailed information on small and medium-sized enterprises (SMEs) operating across the state. The database will help the government identify new taxpayers, forecast revenue trends more accurately, and broaden the tax net.
“With the full rollout of our digital tax infrastructure and business data systems, we project to reach N140 billion in annual IGR by 2026,” Anas stated confidently.
Data-Driven Governance and Community Integration
The Katsina State Government’s revenue strategy goes beyond taxation—it is rooted in data-driven planning and citizen engagement. By linking revenue collection to local development outcomes, the state hopes to rebuild trust between government and citizens, ensuring that taxpayers perceive tangible value from their contributions.
Anas emphasized that this inclusive approach ensures that residents in urban and rural areas alike understand the direct benefits of compliance. “We now prioritize community ownership of development projects,” he said. “Funds generated through taxes are visibly channeled into schools, healthcare centers, roads, and security initiatives.”
National Context: How Katsina Compares
According to the National Bureau of Statistics (NBS), Nigeria’s 36 states and the Federal Capital Territory (FCT) collectively generated N3.63 trillion in IGR in 2024, bringing total revenue generated between 2021 and 2024 to N10.88 trillion.
Despite these figures, most states remain heavily dependent on federal allocations through the Federation Account Allocation Committee (FAAC). Between January and July 2025, FAAC disbursed a total of N4.43 trillion to the states, with oil-producing states such as Delta (N361.23 billion), Rivers (N301.18 billion), Lagos (N279.03 billion), Akwa Ibom (N278.11 billion), and Bayelsa (N274.81 billion) receiving the highest allocations.
Katsina, a non-oil-producing state, has therefore recognized the urgent need to diversify its revenue base and boost self-sufficiency. The state’s current IGR represents a fraction of its potential, given its population size, agricultural base, and growing informal sector.
Recent Development Initiatives
The government’s broader development agenda complements its revenue reforms. In July 2025, the Katsina State Government approved N23.8 billion for key infrastructure and social projects. The funds are being channeled into healthcare upgrades, road rehabilitation, security improvements, and hospitality sector revitalization.
The projects are concentrated in five major Local Government Areas (LGAs)—Kankara, Malumfashi, Faskari, Jibia, and Funtua—which are seen as strategic economic hubs within the state.
Looking Ahead
The Katsina State Government’s vision aligns with its goal of achieving 70% broadband penetration by 2030, an initiative expected to accelerate digital transformation across sectors, including tax administration, education, and governance.
Analysts say the N140 billion IGR target is ambitious but achievable if the government sustains momentum in digitalization, improves enforcement, and deepens public awareness.
By embracing technology-driven governance, data intelligence, and inclusive fiscal management, Katsina aims not only to improve its revenue profile but also to set a benchmark for other northern states striving for economic independence.
If successful, the initiative could position Katsina as one of Nigeria’s top-performing subnational economies by 2026, signaling a shift toward innovation-led fiscal sustainability in state governance.
