Nigeria’s VAT Gap Widens: Zones Receive Far More Than They Contribute
By FIDELUS ZWANSON
NIGERIA’S latest VAT distribution for October 2025 has revealed sharp disparities between what the six geo-political zones contributed and what they received, according to FAAC data compiled by TheCableIndex.
The South-West remained the highest contributor, generating ₦333.01 billion but receiving ₦91.88 billion, amounting to just 27.59 percent of its input. The South-South followed with ₦80.48 billion contributed and ₦53.79 billion received, representing 66.84 percent.
In contrast, the northern zones received significantly more than they contributed. The North-West generated ₦41.82 billion but got ₦64.07 billion (153.20%), while the North-Central contributed ₦20.51 billion and received ₦44.32 billion (216.09%). The North-East contributed ₦18.94 billion yet received ₦44.17 billion, translating to 233.21 percent.
The South-East, though the lowest contributor at ₦13.26 billion, received ₦36.91 billion—278.36 percent of its contribution, the highest return ratio among all zones.
The figures highlight the persistent imbalance between VAT generation and allocation across Nigeria’s regions, underscoring ongoing debates over fiscal federalism and revenue distribution.
Credit: Ethnic African Stories
