Value Added Tax (VAT) remained a key revenue driver for Nigeria in January 2026, with collections rising sharply month-on-month and highlighting the persistent gap between what states generate and what they receive from the central pool.
Here’s a breakdown of the top VAT-contributing states in January 2026 and how much they were allocated from the N913.47 billion non-import VAT pool, based on data from the Federation Account Allocation Committee (FAAC).
Read also: State coffers swell as VAT remittance hits historic N1trn under new formula
Lagos State…
Lagos State continued to dominate VAT collections, generating N533.40 billion in January and accounting for 58.39 per cent of total non-import VAT.
The state received a gross allocation of N111.22 billion and retained N101.34 billion after statutory deductions, highlighting the disparity between its contribution and its share of the centrally pooled revenue.
Oyo State…
Oyo State ranked second in gross VAT allocation, generating N67.18 billion and receiving N24.04 billion from the pool. While its contribution was far below Lagos, it remained one of the top-performing states in terms of VAT receipts.
Rivers State…
Rivers State closely followed, contributing N66.35 billion and receiving a gross allocation of N23.57 billion. The state’s strong VAT performance, driven largely by economic activities in the oil-rich region, still earned it far less than Lagos.
FCT…
The Federal Capital Territory (FCT), Abuja, generated N39.73 billion and received N15.76 billion. Its VAT performance was supported by administrative and commercial activities, earning it a moderate share of the centrally distributed pool.
Read also: Nigeria’s VAT collections hit N2.28 trillion in Q3 2025, up 10.7% – NBS
Bayelsa State…
Bayelsa State generated N34.62 billion in VAT but received only N15.07 billion in gross allocation, highlighting the effect of the redistribution formula that aims to balance revenue among states.
The January 2026 figures show the continued concentration of VAT generation in a few economically active states, particularly Lagos, while reflecting the revenue-sharing system that pools VAT centrally and redistributes it according to an approved formula, creating noticeable gaps between what states generate and what they ultimately receive.
