VAT Revenues to States Rise to ₦551.8 Billion in February – THIS UPDATE

By Ayo Kehinde

Nigeria’s Value Added Tax (VAT) disbursement to states increased sharply in February 2026, with gross allocations increasing by 30.36% month-on-month to ₦551.77 billion from ₦423.25 billion recorded in January.

Data from the Accountant General’s Office shows that net VAT outlay also increased by 31.41% to ₦541.89 billion, reflecting sustained revenue momentum in subnational governments in the first quarter of the year.

The increase was across the board, with all states reporting higher appropriations over the month, indicating stable tax collections and resilient economic activity. February’s growth builds on a strong recovery in January, when VAT disbursements increased by 74%, suggesting the previous spike was not a one-off adjustment.

Lagos State maintained its position as the largest beneficiary by a wide margin, with gross allocation rising to ₦111.22 billion from ₦61.00 billion in January, an increase of 82.32%. After a deduction of ₦9.89 billion, its net outlay stood at ₦101.34 billion, highlighting its dominant position as Nigeria’s largest VAT payer.

Oyo State ranked second with ₦24.04 billion, followed by Rivers with ₦23.57 billion and Kano with ₦17.37 billion. The Federal Capital Territory entered the highest bracket with ₦15.76 billion, while Bayelsa recorded a sharp increase to ₦15.07 billion.

Mid-tier states such as Katsina, Jigawa, Delta and Kaduna recorded moderate gains, while lower-tier states also recorded steady increases, with allocations generally ranging between ₦9 billion and ₦10.5 billion.

The sustained increase in VAT distribution highlights the improvement in tax inflows to states, even as disparities in economic activity continue to shape allocation patterns.

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