Top 10 Nigerian states receiving more VAT than they contributed in August 2024

The redistribution of Value Added Tax (VAT) revenues in Nigeria has consistently sparked debate, particularly concerning the fairness of how VAT contributions and allocations are handled.

In August 2024, some states received substantially more VAT than they contributed, raising questions about equity and sustainability in the country’s revenue-sharing formula.

Read also: Top 10 VAT- VAT-contributing states and what they received from the pool in August 2024

Here’s a list of the top 10 states receiving more VAT than they contributed:

1. Imo State
VAT contributed: N235.41 million
VAT received: N6.01 billion (Increase of 2,554%)

2. Zamfara State
VAT contributed: N432.8 million
VAT received: N5.65 billion (1,304%)

3. Bauchi State
VAT contributed: N691.28 million
VAT received: N6.48 billion (937%)

4. Kebbi State
VAT contributed: N665.17 million
VAT received: N5.66 billion (851%)

5. Abia State
VAT contributed: N663.42 million
VAT received: N5.43 billion (818%)

6. Enugu State
VAT contributed: N1.08 billion
VAT received: N5.73 billion (530%)

7. Cross River State
VAT contributed: N1.08 billion
VAT received: N5.51 billion (510%)

8. Katsina State
VAT contributed: N1.68 billion
VAT received: N7.27 billion (432%)

9. Ondo State
VAT contributed: N1.45 billion
VAT received: N5.88 billion (405%)

10. Jigawa State
VAT contributed: N1.59 billion
VAT received: N6.42 billion (404%)

This disproportionate redistribution highlights the persistent tension in Nigeria’s fiscal federalism. States with high VAT contributions, such as Lagos and Rivers, have often argued for more equitable sharing formulas that reward productivity.

However, advocates of the current system argue that it ensures national cohesion and supports economically disadvantaged states.