
By David Akinmola
The Federation Account Allocation Committee (FAAC) covering October 2023 to March 2024 has said twenty-one of the 36 states, including the federal government, are on track to generate N2.5 trillion as Value Added Tax (VAT) revenue, marking a 65.8 per cent increase from the ₦1.527 trillion projected in 2024.
The projection was obtained from budget estimates and data provided by the (FAAC) covering October 2023 to March 2024.
According to the data, the target excludes potential revenue gains from the implementation of recently introduced tax reform bills.
Among the 36 states, states included in the projection are Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta. Budget data for the remaining 14 states and the Federal Capital Territory were not available.
The Federal Government’s VAT revenue share is expected to rise from ₦512.8 billion in 2024 to ₦972 billion in 2025. Individual states have also made significant upward revisions. For instance, Kebbi State, which earned ₦41 billion in VAT revenue in 2024, has projected ₦87.3 billion for 2025.
Similarly, Oyo State has set a target of ₦144 billion, up from ₦78.8 billion last year, while Osun State expects ₦78.1 billion compared to ₦45.3 billion in 2024.
Other states with notable increases include Ogun (₦85 billion), Kano (₦97.3 billion), Ebonyi (₦85.9 billion), and Anambra (₦92.4 billion). States such as Abia, Bauchi, and Akwa-Ibom have also revised their projections, reflecting optimism in VAT revenue growth for the coming year.
This surge in VAT revenue targets underscores the government’s drive to boost non-oil revenue through tax reforms and improved collection mechanisms.
However, the actualization of these ambitious goals may depend on effective implementation and the broader economic climate.