FG, 21 states to share N2.5tn VAT revenue in 2025

FG, 21 states to share N2.5tn VAT revenue in 2025

 Nigeria’s federal government and 21 out of the 36 states in the federation have targeted a combined Value Added Tax revenue of N2.5 trillion for 2025 in their respective budget estimates.This figure was derived from financial reports released by the Federation Account Allocation Committee between October 2023 and March 2024.An analysis of the 2025 budget documents from the Federal Government and 21 states revealed a combined VAT revenue projection of about N2.53 trillion, representing a significant increase of N1 trillion (65.8 percent) compared to the N1.527 trillion projected in 2024.This projection excludes additional funds that may accrue from the implementation of the contentious tax reform bills.The 21 states include Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta. Budget documents for the remaining 14 states and the Federal Capital Territory were unavailable.In 2024, available data from the Federation Account Allocation Committee showed that the federal government’s share of VAT revenue was N512.8 billion, but it is projected to rise to N972 billion in 2025. Similarly, Kebbi State, which received N41 billion from VAT in 2024, anticipates N87.3 billion this year.Kaduna State’s VAT revenue is projected at N57.8 billion, up from N48.2 billion in its 2024 budget.On the part of Ekiti State, it plans to generate N54.9 billion in VAT revenue this year, compared to N52.6 billion in 2024.Oyo State, which earned N78.8 billion from VAT in 2024, projected N144 billion for 2025, while Osun State expects N78.1 billion, up from N45.3 billion last year.Other states such as Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, and Anambra have projected VAT revenues of N85bn, N74.9 billion, N87.3 billion, N71.5 billion, N97.3 billion, N85.9bn, N50.8bn, N39bn, and N92.4bn, respectively, for 2025. In comparison, their 2024 projections were N57.7bn, N44bn, N49.4bn, N30.3bn, N76.6bn, N46.9bn, N36.5bn, N30bn, and N58.4bn, respectively.Similarly, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta have projected VAT revenues of N60.6bn, N64.6bn, N80bn, N78.5bn, N70bn, N52.5bn, and N46.6bn, respectively, for 2025. Their projections for 2024 were N40bn, N50.6bn, N45bn, N45bn, N45bn, N47bn, and N45.7bn.

Source: FG, 21 states to share N2.5tn VAT revenue in 2025

 - NigerianEye
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