Emerging data showing the position of each of the nation’s geopolitical zones, the contribution to the Added Tax (VAT) pool and allocation received in return, has eventually revealed the real situation of things – exposing the falsity of the long held exaggerated belief about the importance or dependency of one zone or region to the others or rest of the country.
For example, the data revealed that the five Southeastern states in Nigeria, contrary to belief and expectations, collectively contributed N101.09 billion to the country’s Value Added Tax (VAT) pool in 2024 and received a staggering share of N341.45 billion in return.
According to data compiled by Agora Policy, a Nigerian think tank committed to finding practical solutions to national challenges, Lagos contributed 54% of the total non-import VAT, while 33 states collectively accounted for 19%.
The Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) were responsible for VAT collections during the year.
Out of the N6.72 trillion total VAT generated, FIRS collected N5.13 trillion, accounting for 76.3% of the pool, while NCS contributed N1.59 trillion, representing 23.7%.
Official figures revealed that VAT revenue for 2024 increased by 85%, rising from N3.64 trillion in 2023 to N6.72 trillion.
While the Southeastern states contributed relatively little to the VAT pool, the region received approximately 3.38 times their contributions.
Below is a breakdown of VAT contributions and allocations for the South-East states in 2024:
1. Anambra
Contributed: N47.53bn
Allocated: N78.00bn
2. Ebonyi
Contributed: N25.11bn
3. Enugu
Contributed: N15.40bn
Allocated: N67.54bn
4. Abia
Contributed: N8.68bn
Allocated: N63.78bn
5. Imo
Contributed: N4.38bn
Allocated: N70.70bn
Total Contribution: N101.09bn
Total Allocation Received: N341.45bn.
South-West contributed N3.11trn
South-West contributed N3.11trn — received N849.7bn from VAT pool in 2024
However, the six Southwestern states in the country collectively contributed impressive N3.11 trillion to the country’s Value Added Tax (VAT) pool in 2024 and received N849.7 billion.
This contrasts with the Southeastern states, which collectively contributed N101.09 billion to the country’s Value Added Tax (VAT) pool in 2024 and received a substantial N341.45 billion in return.
According to data compiled by Agora Policy, a Nigerian think tank committed to finding practical solutions to national challenges, Lagos contributed the highest to the VAT among the Southwestern states and all the states at large.
Official figures revealed that VAT revenue in 2024 increased by 85%, rising from N3.64 trillion in 2023 to N6.72 trillion.
Below is a breakdown of VAT contributions and allocations for the Southwestern states in 2024:
1. Lagos
Contributed: N2.75tn
Allocated: N460.11bn
2. Oyo
Contributed: N272.41bn
Allocated: N116.83bn
3. Ogun
Contributed: N26.16bn
Allocated: N72.10bn
4. Ondo
Contributed: N13.80bn
Allocated: N68.57bn
5. Ekiti
Contributed: N29.58bn
Allocated: N63.47bn
6. Osun
Contributed: N14. 79bn
Allocated: N68.62bn
Total Contribution: N3.11tn
Total Allocation Received: N849.7bn.
Additional report source: Nigerian Tribune.
