The six states in the North East geopolitical zone collectively generated N36.04 billion in Value Added Tax (VAT) and received N124.22 billion in VAT allocations in the first quarter of 2025, according to the latest figures released by Statisense.
The data, which referenced the Federation Account Allocation Committee (FAAC), was published over the weekend on Statisense’s official X handle.
The states in the North East — Adamawa, Borno, Bauchi, Yobe, Gombe, and Taraba — posted varied performances in VAT generation and allocation. Adamawa generated N9.12 billion and received N21.13 billion, while Borno generated N7.87 billion and got N23.02 billion. Bauchi recorded VAT generation of N6.30 billion and received N23.84 billion. Yobe generated N5.81 billion and got N18.94 billion, and Gombe generated N4.61 billion and received N18.85 billion.
In contrast, states in the South-South zone — Rivers, Bayelsa, Edo, Delta, Akwa Ibom, and Cross River — generated a combined N364.99 billion in VAT in the same period but received N171.18 billion. Rivers State alone accounted for N278.23 billion in VAT generation and received N60.27 billion. Bayelsa generated N27.26 billion and got N20.44 billion, while Edo posted N20.73 billion in VAT and received N22.71 billion. Delta generated N20.04 billion and received N24.47 billion. Akwa Ibom recorded N16.08 billion in VAT and got N23.59 billion, while Cross River generated N2.65 billion and received N19.70 billion.
Analysis of VAT proceeds shared among the three tiers of government — federal, state, and local councils — showed that a total of N1.9 trillion was disbursed in the first quarter of 2025, a notable increase compared to the N1.43 trillion shared in the corresponding period of 2024.
Of the N1.9 trillion shared, states received the largest allocation amounting to N960.9 billion, while local government councils got N672.7 billion. The federal government received the least, with a total of N288.3 billion. The current revenue-sharing formula for VAT allocates 15 percent to the federal government, 50 percent to states, and 35 percent to local government areas.
Monthly breakdown of VAT proceeds showed that in January 2025, a total of N718.78 billion was realized, out of which the federal government received N107.81 billion, states got N359.39 billion, and local government councils received N251.57 billion. In February, the total VAT collected was N609.43 billion, with the federal government getting N91.42 billion, states receiving N304.72 billion, and local councils N213.30 billion. By March, VAT collections stood at N593.75 billion, with N89.06 billion going to the federal government, N296.88 billion to states, and N207.81 billion to local councils.
Meanwhile, the Taiwo Oyedele-led Tax Reform Committee has proposed a progressive increase in VAT from the current 7.5 percent to 15 percent by the year 2030, as part of the recommendations contained in the proposed Tax Reform Bills. The National Assembly has transmitted the bill to President Bola Tinubu for consideration and assent.
