Lagos Tops VAT Chart as Low-Contributing States Get Bigger Shares in October 2025

October 2025 VAT Allocation: Lagos Leads Contributions as Low-Contributing States Receive Higher Returns

The Federation Accounts Allocation Committee (FAAC) has released the breakdown of Value Added Tax (VAT) contributions and allocations for October 2025, revealing significant disparities between what states contributed and what they received.

According to data compiled by Visblog, Lagos, Rivers, and Oyo remained the top contributors, while states with some of the lowest VAT inputs received allocations far exceeding their contributions.

Lagos Remains Nigeria’s VAT Powerhouse

Lagos State contributed N286.24 billion, the highest in the country, but received only N48.96 billion, representing just 17.10% of its contribution.

Rivers followed with N42.27 billion contributed and N13.99 billion received (33.11%), while Oyo contributed N31.64 billion and received N12.89 billion (40.74%).

Low-Contributing States Record Massive Returns

Several states with comparatively low VAT contributions received allocations multiple times higher than what they contributed:

• Cross River: Contributed N446.02 million, received N7.73 billion (1,526.82%).
• Benue: Contributed N709.14 million, received N7.81 billion (1,101.33%).
• Osun: Contributed N1.07 billion, received N7.28 billion (680.37%).
• Imo: Contributed N1.24 billion, received N7.67 billion (618.55%).
• Bauchi: 563.01% return.
• Akwa Ibom: 541.55% return.
• Abia: 518.05% return.
• Yobe: 444.22% return.
• Borno: 392.57% return.

States With Near-Balanced Returns

A few states recorded allocations closer to their contribution levels:

• Kaduna: N11.87 billion contributed, N10.62 billion received (89.47%).
• Taraba: N7.85 billion contributed, N7.36 billion received (93.76%).
• Edo: 85.95% return.
• Delta: 69.81% return.

Fiscal Federalism Debate Deepens

The October 2025 VAT distribution once again highlights the long-standing controversy surrounding Nigeria’s revenue-sharing formula. While high-contributing states continue to receive far less than their input, many lower-performing states remain heavily dependent on federal allocations.

As discussions around restructuring and fiscal federalism intensify, stakeholders are expected to revisit the fairness and sustainability of the current VAT distribution system.

Lagos Leads VAT Contribution as Low-Contributing States Receive Highest Allocations in October 2025

The Federation Accounts Allocation Committee (FAAC) has released the breakdown of Value Added Tax (VAT) contributions and allocations for October 2025, revealing significant disparities between what states contributed to the national VAT pool and what they received.

According to data compiled by Visblog, Lagos, Rivers, and Oyo remained the top contributors, while states with some of the lowest VAT inputs received allocations far exceeding their contributions.

Lagos Remains VAT Powerhouse

Lagos State contributed N286.24 billion, representing the highest in the country, but received only N48.96 billion, amounting to just 17.10% of its contribution. Rivers followed with N42.27 billion contributed and N13.99 billion received (33.11%), while Oyo contributed N31.64 billion and received N12.89 billion (40.74%).

Northern and Low-Contributing States Receive Higher Returns

Several states with comparatively low VAT contributions received allocations multiple times higher than what they contributed. For example:

Cross River contributed just N446.02 million, but received N7.73 billion — a massive 1,526.82% return.

Benue contributed N709.14 million and received N7.81 billion (1,101.33%).

Osun, with a contribution of N1.07 billion**, received N7.28 billion (680.37%).

Imo contributed N1.24 billionand received N7.67 billion (618.55%).

Other major beneficiaries include Bauchi (563.01%), Akwa Ibom (541.55%), Abia (518.05%), Yobe(444.22%), and Borno (392.57%).

States with Balanced Returns

A few states received allocations close to their contribution levels. Kaduna contributed N11.87 billion and received N10.62 billion (89.47%), while Taraba contributed N7.85 billion and received N7.36 billion (93.76%). Edo (85.95%) and Delta (69.81%) also maintained relatively closer balance.

Mid-Tier Contributors Also Receive Higher Allocations

Middle-ranking contributors such as Kwara, Kogi, Ekiti, Ogun, and Anambra all recorded allocations significantly above their contributions, reflecting the national redistribution model embedded within the VAT sharing formula.

A Deepening Debate on Fiscal Federalism

The October 2025 VAT distribution underscores a long-standing controversy about Nigeria’s revenue-sharing structure. States contributing the most continue to receive far less than their input, while many lower-performing states rely heavily on federal allocations for survival.

As discussions around restructuring and fiscal federalism deepen, stakeholders are expected to revisit the fairness and sustainability of the current VAT distribution system.