VAT: How Zamfara, Taraba, others ‘suck’ Lagos, Rivers to survive

Details of the Value Added Tax (VAT) collections made by each state and what it was allocated by the Federation Allocation Committee (FAAC), between January and August of this year, has revealed how states like Zamfara, Taraba and others largely depend on Federal allocation to survive.

According to reports of VAT collection by Federal Inland Revenue Service (FIRS) offices nationwide, Lagos, Rivers and Oyo states recorded the highest collections.

Lagos generated N429. 203 billion; Rivers, N90. 293 billion, while Oyo came third with N64. 646 billion.

However, in the allocation of VAT revenue, Kano came second after generating N24.492b, which is way smaller compare to what Rivers and Oyo states generated in the same period.

The reports showed that Lagos received the highest allocation of sum of N139. 587 billion from the N429. 203 billion its generated ; Kano which generated N24.492 billion came second with N47.082 billion, while Rivers was in the third position after receiving N 46.270 billion from the N90.293 billion its generated.

Zamfara is the only state that recorded less than a billion in the eight-month period of review.

The North-East state generated only N598. 133 million, an average of about N75 million per month but received N35. 716 billion (about N4.5 billion monthly), placing it at the forth position on the allocation table.

Allocation for the six geo-political zones

South West had the highest allocation of N256. 737 billion, particularly because of the huge allocation to Lagos state.

North West had the second highest allocation of N219. 813 billion while the oil producing region of South-South got N162. 598 billion.

North East and North Central received N129. 801 billion and N129. 154 billion respectively; while the South East kept the rear with N 109.629 billion allocation.

What each state generated between January –August 2021 and the allocation to each of them:

No. STATE              VAT GENERATED              VAT ALLOCATION
1 Abia                           2.290b                            20.020b
2 Adamawa                  3.689b                            22.260b
3 Akwa Ibom                8.39b                              27.749b
4 Anambra                   5.938b                            25.001b
5 Bauchi                       5.309b                            25.613b
6 Bayelsa                     12.536b                           17.659b
7 Benue                       1.268b                             24.527b
8 Borno                       3.442b                             25.896b
9 Cross River               2.347b                             20.478b
10 Delta                      13.964b                            27.854b
11 Ebonyi                    7.894b                             18.768b
12 Edo                         8.284b                             22.588b
13 Ekiti                        6.635b                              19.756b
14 Enugu                     5.485b                              20.729b
15 Gombe                   4.028b                              17.650b
16 Imo                        1.941b                               25.111b
17 Jigawa                    3.375b                              26.369b
18 Kaduna                  18.262b                            32.726b
19 Kano                      24.492b                            47.082b
20 Kastina                   3.738b                              31.539b
21 Kebbi                     1.284b                              22.162b
22 Kogi                       3.286b                              22.282b
23 Kwara                    3.471b                              18.998b
24 Lagos                    429.203b                           139.587b
25 Nassarawa            2.495b                              16.872b
26 Niger                    3.723b                                25.042b
27 Ogun                   11.823b                              25.141b
28 Ondo                   4.554b                                22.107b
29 Osun                   1.995b                                 24.766b
30 Oyo                     64.646b                               45.136b
31 Plateau                5.208b                                 21.433b
32 Rivers                  90.293b                               46.270b
33 Sokoto                4.978b                                 24.219b
34 Taraba                 1.756b                                 18.469b
35 Yobe                    9.445b                                 20.525b
36 Zamfara               598.133m                            35.716b
37 FCT                     235.794b                            NOT ELIGIBLE


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