The South West got ₦1 back for every ₦3.60 in VAT, while the North West received ₦2.60 for every ₦1 contributed

Key takeaways

  • The South West generated ₦929.86B, over half of Nigeria’s total VAT, but received only ₦258.19B, amounting to ₦1 back for every ₦3.60 contributed.
  • The North West contributed just ₦68.05B but received ₦176.73B, meaning it got back ₦2.60 for every ₦1 generated.
  • The South South, the second-highest contributor at ₦364.99B, got back ₦171.18B, just ₦1 for every ₦2.13 generated.
  • The three southern zones together contributed ₦1.32 trillion in VAT, nearly 90% of the national total, but received less than half of it back.
  • Zones with the lowest generation (North East and South East) received 3 to 4 times their contributions.

Nigeria’s VAT (Value Added Tax) records for Q1 2025 show distinct regional patterns in both revenue generation and allocation. The South West zone generated the highest VAT at ₦929.86 billion, more than twice the amount generated by the South South, which stood at ₦364.99 billion. The North West generated ₦68.05 billion, while the North Central, North East, and South East generated ₦52.69 billion, ₦36.04 billion, and ₦28.38 billion respectively.

On the allocation side, the South West received ₦258.19 billion, the South South ₦171.18 billion, and the North West ₦176.73 billion. The North Central and North East were allocated ₦126.17 billion and ₦124.22 billion respectively, while the South East received ₦104.50 billion.

Source:

Federation Account Allocation Committee

Period:

Q1 2025
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