STATES POCKET N2.37TN VAT UNDER NEW TAX REGIME

Nigerian states have collectively received N2.37 trillion in Value Added Tax (VAT) revenue under the new tax regime, reflecting a significant boost in internally generated funds for sub-national governments.

The increase is attributed to improved collection efficiency, expanded tax base, and the implementation of recent fiscal reforms aimed at enhancing revenue generation at the state level. Several states have reported substantial growth in their VAT inflows, providing additional resources for infrastructure and social programmes.

Finance experts welcomed the development, noting that greater fiscal autonomy for states could encourage more responsible governance and economic planning. However, they also called for transparency and prudent utilisation of the funds to ensure maximum developmental impact.

The Federal Government has been working on various initiatives to improve the tax system and reduce over-reliance on oil revenue. The new regime is seen as a step towards a more diversified and sustainable revenue framework for the country.

Stakeholders urged states to invest the additional VAT revenue in critical areas such as education, healthcare, and infrastructure to improve the quality of life for citizens.

The N2.37 trillion figure highlights the growing importance of non-oil revenue sources in Nigeria’s fiscal architecture.