This is according to data provided from various FAAC reports, released by the National Bureau of Statistics (NBS) and compiled by Nairametrics Research.
Lagos, Kano, and Oyo States were the highest recipients during the period under review, jointly accounting for 25.6% of the total gross VAT allocations to the entire states. According to data from the NBS, the Federal Inland Revenue Service (FIRS) on behalf of the federal government generated a sum of N3.82 trillion as VAT between 2018 and 2020.
Nigeria’s VAT revenue has continued to record significant increases in recent times since the federal government increased the rate from 5% to 7.5% in January 2020, growing from an annual gross of N659.15 billion in 2011 to about N1.53 trillion in 2020. In the first half of 2021, VAT revenue has already hit N1.01 trillion, indicating that a huge annual collection for the year 2021 may well be underway, especially at a time when oil revenues have been less than impressive.
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