Full List of Nigerian States With Highest Contribution to VAT Pool in January 2025, Lagos Leads
Data from the Federation Account Allocation Committee (FAAC) indicates an increase in VAT contributions by over 20 Nigerian states
A state-by-state analysis shows that increased VAT contribution showed improved economic conditions and better revenue generation
FAAC disclosed that Kwara state recorded the highest spike in monthly VAT contribution at N9.53 billion in January from N1.97 billion in December 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Information from the Federation Account Allocation Committee (FAAC) shows that over 20 Nigerian states increased their contribution to the value-added tax (VAT) pool in January this year, relative to December 2024.
Analysis shows that 26 states recorded a spike in VAT contributions within the period, indicating improved economic conditions.
Full List of Nigerian States With Highest Contribution to VAT Pool in January 2025, Lagos Leads| image 7
Tax Reform Bill sparks debate
VAT is one of the key revenue sources and is shared among the three tiers of government via FAAC.
However, the sharing formula has been disputed recently, with states disagreeing with the Nigerian government’s proposed formula.
According to reports, President Bola Tinubu proposed a comprehensive tax reform bill to the national assembly to harmonise the nation’s tax laws and boost financial stability.
Full List of Nigerian States With Highest Contribution to VAT Pool in January 2025, Lagos Leads| image 174
One of the key aspects of the reform was the restructuring of the VAT-sharing format.
Governors oppose VAT-sharing formula
The proposal initially suggested allocating 20% of VAT revenue based on equality, 60% on derivation, and 20% on population.
The proposal faced opposition from northern governors who saw the recommendation as unfavourable to the region.
The Nigeria Governors’ Forum (NGF) countered the formula and announced a revised formula of 50% based on equality, 30% on derivation, and 20% on population.
According to the FAAC data, the 36 states contributed about N496.72 billion to the VAT pool in December 2024.
States with the most improved VAT contributions
The figure rose by 8.94% to N541.11 billion in January 2025.
Kwara: N9.53 billion
FAAC said Kwara led the pack with the highest monthly VAT increase, contributing N9.53 billion in January, representing a 383.41% increase from N1.97 billion in December 2024.
Sokoto: N4.41 billion
The state’s contribution to the national VAT pool rose by 343.3% from N995.3 million in December to N4.41 in January.
Other states include Edo, Kebbi, and Imo, whose contributions rose by 342.59%, $253.63%, and Kebbi at 114.12%, respectively.
While some states saw an increase in VAT contributions, others recorded a notable decline.
According to TheCable, FAAC said Benue recorded the highest decline, dropping to N2.05 billion in January 2025, from N6.433 billion in December 2024.
Other states with sharp drops include Taraba (-63.60%), Ogun (-56.36%), and Osun (-51.15%).
Top states with the highest VAT contributions
1. KWARA
January: N9.53bn
December: N1.97bn
(383.41% increase)
2. SOKOTO
January: N4.41bn
December: N995.30m
(343.25% increase)
3. EDO
January: N5.09bn
December: N1.15bn
(342.59% increase)
4. IMO
January: N1.59bn
December: N448.51m
(253.63% increase)
5. KEBBI
January: N1.93bn
December: N901.60m
(114.12% increase)
6. EKITI
January: N4.98bn
December: N2.33bn
(113.76% increase)
7. ANAMBRA
January: N3.56bn
December: N1.78bn
(99.91% increase)
8. NASARAWA
January: N3.13bn
December: N1.75bn
(79.19% increase)
9. BORNO
January: N3.91bn
December: N2.28bn
(71.40% increase)
10. BAYELSA
January: N12.80bn
December: N7.68bn
(66.68% increase)
11. GOMBE
January: N2.16bn
December: N1.45bn
(48.84% increase)
12. ENUGU
January: N1.75bn
December: N1.19bn
47.17% increase
13. EBONYI
January: N3.30bn
December: N2.58bn
(27.99% increase)
14. CROSS RIVER
January: N1.55bn
December: N1.26bn
(23.16% increase)
15. DELTA
January: N6.57bn
December: N5.61bn
(17.15% increase)
16. JIGAWA
January: N3.57bn
December: N3.12bn
(14.25% increase)
17. YOBE
January: N2.16bn
December: N1.92bn
(12.13% increase)
18. RIVERS
January: N90.21bn
December: N82.44bn
(9.43% increase)
19. AKWA IBOM
January: N5.62bn
December: N5.15bn
(9.21% increase)
20. OYO
January: N27.71bn
December: N25.43bn
(8.98% increase)
21. KATSINA
January: N3.86bn
December: N3.60bn
(7.29% increase)
22. KANO
January: N9.59bn
December: N8.99bn
(6.67% increase)
23. BAUCHI
January: N2.44bn
December: N2.31bn
(5.75% increase)
24. LAGOS
January: N305.52bn
December: N291.46bn
(4.82% increase)
25. ONDO
January: N985.78m
December: N952.82m
(3.46% increase)
26. PLATEAU
January: N1.75bn
December: N1.72bn
(1.73% increase)
27. KOGI
January: N2.67bn
December: N2.78bn
(-3.98% decrease)
28. ZAMFARA
January: N1.45bn
December: N1.70bn
(-14.71% decrease)
29. NIGER
January: N3.80bn
December: N4.46bn
(-14.96% decrease)
30. KADUNA
January: N3.50bn
December: N4.91bn
(-28.69% decrease)
31. ADAMAWA
January: N3.39bn
December: N5.41bn
(-37.29% decrease)
32. ABIA
January: N733.82m
December: N1.47bn
(-50.13% decrease)
33. OSUN
January: N589.41m
December: N1.21bn
(-51.15% decrease)
34. OGUN
January: N2.31bn
December: N5.29bn
-56.36% decrease
35. TARABA
January: N939.66m
December: N2.58bn
(-63.60% decrease)
36. BENUE
January: N2.05b
December: N6.43bn
(-68.14% decrease)
Nigerian states with highest VAT contributions in December
Legit.ng earlier reported that Lagos State is leading the list of the highest contributors to Nigeria’s Value Added Tax (VAT) revenue in 2024, with a whopping N2.75 trillion.
A Nigerian think-tank, Agora Policy, provided a detailed breakdown of each state’s VAT contributions and disclosed that the amount represents 54% of the entire non-import VAT pool in the country during the review period.
According to the data published on Saturday, January 25, 2024, Rivers State followed with N832.69 billion, while the Federal Capital Territory came third with N303.64 trillion.
