VAT Pool Contributions and Receipts: A State-by-State Breakdown

The Value Added Tax (VAT) pool is a critical component of Nigeria’s fiscal federalism, allowing states to share revenue generated from VAT. Recently, the National Bureau of Statistics (NBS) released data on VAT pool contributions and receipts for 2024. This article provides a state-by-state breakdown of the contributions and receipts, highlighting the top contributors and recipients.

Top Contributors

The top three contributors to the VAT pool in 2024 were Lagos, Rivers, and Oyo states.

1. Lagos State: Lagos contributed a whopping N2.75 trillion to the VAT pool, accounting for approximately 35% of the total contributions. In return, the state received N460.11 billion, representing 16.74% of its contribution.
2. Rivers State: Rivers contributed N832.69 billion, making it the second-highest contributor. The state received N186.66 billion, which translates to 22.4% of its contribution.
3. Oyo State: Oyo contributed N272.41 billion, securing its position as the third-highest contributor. The state received N116.83 billion, representing 42.9% of its contribution.

Other States

While Lagos, Rivers, and Oyo were the top contributors, other states also made significant contributions to the VAT pool.

• Kano State: Contributed N77.76 billion, received N117.19 billion (150.7%)
• Delta State: Contributed N73.39 billion, received N80.73 billion (110%)
• Bayelsa State: Contributed N64.66 billion, received N63.42 billion (98.1%)
• Edo State: Contributed N53.55 billion, received N72.33 billion (135.1%)
• Anambra State: Contributed N47.53 billion, received N78 billion (167.1%)

States with Significant Receipts

Some states received significantly more than they contributed to the VAT pool.

• Kaduna State: Contributed N30.30 billion, received N88.50 billion (292.1%)
• Katsina State: Contributed N22.08 billion, received N85.59 billion (387.6%)
• Bauchi State: Contributed N19.59 billion, received N77.47 billion (395.3%)
• Imo State: Contributed N4.38 billion, received N70.70 billion (1,613%)

Conclusion

The VAT pool contributions and receipts for 2024 provide valuable insights into the fiscal dynamics of Nigeria’s states. While some states, like Lagos and Rivers, contribute significantly to the VAT pool, others receive more than they contribute. Understanding these dynamics is essential for effective fiscal planning and resource allocation at the state level.