By Kolawole Ojebisi
The 36 states in Nigeria have reportedly contributed N541.11 billion in Value Added Tax (VAT) revenue in January 2025.
This is according to data obtained from the Federation Account Allocation Committee (FAAC) VAT, a consumption tax administered by the Federal Inland Revenue Service (FIRS), is one of the key revenue sources shared among the three tiers of government through FAAC.
However, the distribution formula has been a subject of dispute in recent times, with states disagreeing with the federal government’s proposed formula.
According to the data, while the 36 states contributed N541.11 billion in January 2025, they reveived a total of N278.78 billion from the federal government
The data also showed that there was an increase of 8.94 percent contributed by the 36 states in January 2025 against a total of N496.72 billion VAT pool in December 2024.
The commission said Kwara topped the list of states with the highest month-on-month VAT increase, contributing N9.53 billion in January 2025 — a 383.41 percent increase from N1.97 billion in December 2024.
Sokoto followed closely with a 343.25 percent increase in contribution, climbing from N995.3 million in December to N4.41 billion in January.
Other states that recorded significant VAT contributions include Edo (342.59 percent), Imo (253.63 percent), and Kebbi (114.12 percent).
While most states recorded an increase, some saw their VAT contributions decline.
The FAAC said Benue posted the highest drop, with its contribution decreasing to N2.05 billion in January, signalling a 68.14 percent fall from N6.43 billion in December last year.
Other states with sharp declines include Taraba (-63.60 percent), Ogun (-56.36 percent), and Osun (-51.15 percent). Further more, the FAAC data ranked Osun, Abia, and Ondo as the lowest contributors in Janury 2025.
Osun contributed N589.41 million, Abia N733.82 million, and Ondo N985.78 million, making them the bottom three states in terms of VAT contributions. Despite their low contributions, these states received significantly higher amounts in federal allocations, with Osun getting N7.73 billion, Abia N7.29 billion, and Ondo N7.80 billion.
LAGOS, RIVERS BEAR THE BRUNT
Meanwhile, Lagos state, Nigeria’s economic hub centre, contributed N305.52bn to the VAT pool in 2025— more than half of the total revenue generated but received just N62 5bn in return as VAT share, representing only 20.49% of its contribution.
Rivers state, another major contributor, generated N90.21 billion but received N11.1billion from the VAT pool, accounting for 12.20 percent of its input.
In contrast, states with significantly lower contributions benefitted more from the redistribution.
For instance, Kano, which contributed N9.59bn received N13.57bn from the VAT pool accounting for 141.49% of its input.
Same thing goes for Delta, Ekiti and Akwa-Ibom which received from the VAT pool more than their inputs. Delta contributed N5.57bn but received N9.05bn accounting for 136.77% of its input; Akwa–Ibom contributed: N5.62bn but received: N8.79bn accounting for 156.26% of its input.
Ekiti in its own case contributed N4.98bn to the VAT pool but received: N7.51bn accounting for 150.65% of its input. Katsina’s N3.86bn contribution pales in comparison with the N10.01bn the state received from the VAT pool accounting for 259.34% of its input.
Kaduna’s case is a study in disparity with just N3.50bn contribution to the VAT pool, the state received N10.18bn accounting for 290.60% of its input.
VAT DISTRIBUTION ACROSS ZONES
Across the geopolitical zones, the South-West, led by Lagos, contributed N342bn accounting for the largest share of the VAT pool, followed by the South-South.
In sharp contrast the Northern states contributed the least but received the largest amount from the VAT pool.
Here is how much states contributed to the VAT pool and their FAAC allocation in 2025:
1. LAGOS
Contributed: N305.52bn
Received: N62.59bn (20.49%)
2. RIVERS
Contributed: N90.21bn
Received: N11.01bn (12.20%)
3. OYO
Contributed: N27.71bn
Received: N13.02bn (47.00%)
4. BAYELSA
Contributed: N12.80bn
Received: N8.02bn (62.65%)
5. KANO
Contributed: N9.59bn
Received: N13.57bn (141.49%)
6. KWARA
Contributed: N9.53bn
Received: N8.10bn (85.04%)
7. DELTA
Contributed: N6.57bn
Received: N9.05bn (137.77%)
8. AKWA IBOM
Contributed: N5.62bn
Received: N8.79bn (156.26%)
9. EDO
Contributed: N5.09bn
Received: N8.17bn (160.67%)
10. EKITI
Contributed: N4.98bn
Received: N7.51bn (150.65%)
11. SOKOTO
Contributed: N4.41bn
Received: N8.45bn (191.63%)
12. BORNO
Contributed: N3.91bn
Received: N8.74bn (223.56%)
13. KATSINA
Contributed: N3.86bn
Received: N10.01bn (259.34%)
14. NIGER
Contributed: N3.80bn
Received: N8.57bn (225.73%)
15. JIGAWA
Contributed: N3.57bn
Received: N8.85bn (248.05%)
16. ANAMBRA
Contributed: N3.56bn
Received: N8.72bn (244.92%)
17. KADUNA
Contributed: N3.50bn
Received: N10.18bn (290.60%)
18. ADAMAWA
Contributed: N3.39bn
Received: N7.91bn (233.16%)
19. EBONYI
Contributed: N3.30bn
Received: N7.12bn (215.65%)
20. NASARAWA
Contributed: N3.13bn
Received: N6.86bn (218.95%)
21. KOGI
Contributed: N2.67bn
Received: N7.90bn (295.93%)
22. BAUCHI
Contributed: N2.44bn
Received: N8.93bn (365.95%)
23. OGUN
Contributed: N2.31bn
Received: N8.20bn (355.26%)
24. GOMBE
Contributed: N2.16bn
Received: N7.11bn (328.70%)
25. YOBE
Contributed: N2.16bn
Received: N7.08bn (328.65%)
26. BENUE
Contributed: N2.05bn
Received: N8.55bn (416.84%)
27. KEBBI
Contributed: N1.93bn
Received: N7.77bn (402.38%)
28. ENUGU
Contributed: N1.75bn
Received: N7.76bn (442.91%)
29. PLATEAU
Contributed: N1.75bn
Received: N7.70bn (439.57%)
30. IMO
Contributed: N1.59bn
Received: N8.26bn (521.03%)
31. CROSS RIVER
Contributed: N1.55bn
Received: N7.45bn (480.44%)
32. ZAMFARA
Contributed: N1.45bn
Received: N7.72bn (531.51%)
33. ONDO
Contributed: N985.78m
Received: N7.80bn (791.24%)
34. TARABA
Contributed: N939.66m
Received: N6.91bn (735.00%)
35. ABIA
Contributed: N733.82m
Received: N7.29bn (993.98%)
36. OSUN
Contributed: N589.41m
Received: N7.73bn (1,312.09%)
