… Lagos, Rivers, Oyo dominate distribution under new tax regime
…States receive higher share as federal allocation drops to 10%
Five states of the federation collectively received N87 billion, representing 21.2 per cent of the N410.9 billion Value Added Tax (VAT) revenue shared to the 36 states in April 2026, according to the latest Federation Account Allocation Committee (FAAC) report compiled by the National Bureau of Statistics.
The report, obtained on Sunday, shows a continued concentration of VAT inflows in a few economically dominant states, even as the new Federation Account Allocation Committee revenue-sharing formula under the Nigeria Tax Act 2025 takes effect.
Under the revised framework, states now receive 55 per cent of VAT proceeds, up from 50 per cent, while the Federal Government’s share has been reduced from 15 per cent to 10 per cent in a move aimed at strengthening fiscal federalism and boosting subnational revenue capacity.
Analysis of the disbursement indicates that Lagos State retained its position as the highest beneficiary, receiving N35.03 billion, equivalent to 8.5 per cent of total VAT allocated to states.
It was followed by Rivers State with N21.29 billion (5.2 per cent), while Oyo State emerged third with N12.33 billion, representing three per cent of the total pool.
Further breakdown shows that Kano State and Akwa Ibom State each received N9.31 billion and N9.04 billion respectively, reinforcing their positions among the top revenue-receiving states.
At the lower end of the distribution, Nasarawa State received the least allocation with N4.9 billion. It was closely followed by Yobe State and Cross River State, which received N5.04 billion and N5.12 billion respectively.
The report further revealed that gross VAT revenue for April stood at N806.617 billion, but after statutory deductions, N747.088 billion was distributed across the three tiers of government.
Of the total FAAC disbursement for the month, N2.63 trillion was shared, drawn from multiple revenue streams including N1.70 trillion from the Statutory Account, N200 billion from Non-Oil revenue, N68.10 billion from Solid Minerals, and N664.42 billion from VAT.
The document also highlighted significant deductions for cost of collection, with the Nigeria Revenue Service (NRS) receiving N57.52 billion, while the Nigerian Upstream Petroleum Regulatory Commission got N23.56 billion.
In a related breakdown of total FAAC allocations for April, Delta State emerged as the highest recipient with N53.77 billion, followed by Rivers State with N46.64 billion and Akwa Ibom State with N44.84 billion.
At the lower end, Cross River State received N11.46 billion, Ekiti State got N12.13 billion, while Gombe State received N12.32 billion.
The latest figures underscore the widening disparity in revenue distribution among states, driven largely by consumption patterns, industrial activity, and corporate presence, particularly in oil-producing and commercial hubs.
Analysts say the new VAT formula may continue to favour economically active states unless deliberate interventions are made to boost productivity in weaker revenue bases across the federation.
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