Story perspectives

Southern States Demand VAT Reform Amid Disparity Crisis

1/27/2025

50 8

Summary

Story summary

In 2024, Nigeria's Southwestern states contributed N3.11 trillion to the VAT pool but received only N849.7 billion, revealing stark disparities.
Lagos contributed N2.75 trillion yet received just N460 billion, reflecting a mere 16.7% return.
The current VAT distribution formula faces criticism for inequity, leading to calls for reform.
The Nigeria Governors’ Forum rejected a proposed formula favoring contributions, opting to maintain the existing structure.
Southern states contributed N4.28 trillion but received only N1.73 trillion, while northern states contributed N540.31 billion and received N1.39 trillion.

1 of 1

Story summary

In 2024, Nigeria's Southwestern states contributed N3.11 trillion to the VAT pool but received only N849.7 billion, revealing stark disparities.
Lagos contributed N2.75 trillion yet received just N460 billion, reflecting a mere 16.7% return.
The current VAT distribution formula faces criticism for inequity, leading to calls for reform.
The Nigeria Governors’ Forum rejected a proposed formula favoring contributions, opting to maintain the existing structure.
Southern states contributed N4.28 trillion but received only N1.73 trillion, while northern states contributed N540.31 billion and received N1.39 trillion.