By Toba Owojaiye
The Federal Account Allocation Committee (FAAC) has released the breakdown of Value Added Tax (VAT) contributions by Nigeria’s 36 states for the first quarter (Q1) of 2025, revealing stark disparities in economic activity, consumer spending, and revenue mobilization across the country.
According to the FAAC report, a total of ₦1.55 trillion was generated nationwide in Q1 2025. Lagos State maintained its commanding lead, contributing ₦819.62 billion, over 52.8% of the national VAT pool. This figure alone surpasses the combined total of the bottom 20 states, reinforcing Lagos’ dominance as the commercial capital of Nigeria.
Rivers followed as the second-highest contributor with ₦278.23 billion, while Oyo posted ₦79.78 billion, continuing its rise as an emerging economic hub in the South-West. Bayelsa came in next with ₦27.26 billion, largely buoyed by oil activities. Kano remains the top-performing northern state, generating ₦22.97 billion, just ahead of Edo with ₦20.73 billion and Delta with ₦20.04 billion.
Other notable states include Akwa Ibom (₦16.08 billion), Kwara (₦14.43 billion), and Benue (₦12.36 billion), all making it into the top 10 contributors for the quarter.
At the bottom of the chart, states like Zamfara (₦3.77 billion), Abia (₦2.92 billion), Cross River (₦2.65 billion), Imo (₦2.34 billion), and Taraba (₦2.33 billion) posted the lowest figures. These numbers raise concerns about productivity and the overall business environment in those areas, highlighting the urgent need for economic revitalization.
List of VAT Generated by States in Q1 2025
Lagos – ₦819.62 billion
Rivers – ₦278.23 billion
Oyo – ₦79.78 billion
Bayelsa – ₦27.26 billion
Kano – ₦22.97 billion
Edo – ₦20.73 billion
Delta – ₦20.04 billion
Akwa Ibom – ₦16.08 billion
Kwara – ₦14.43 billion
Benue – ₦12.36 billion
Jigawa – ₦11.22 billion
Sokoto – ₦10.88 billion
Anambra – ₦10.73 billion
Ekiti – ₦10.17 billion
Adamawa – ₦9.12 billion
Kaduna – ₦8.12 billion
Borno – ₦7.87 billion
Ebonyi – ₦7.43 billion
Kogi – ₦7.33 billion
Ogun – ₦7.20 billion
Ondo – ₦7.14 billion
Nasarawa – ₦7.05 billion
Bauchi – ₦6.30 billion
Niger – ₦5.97 billion
Katsina – ₦5.96 billion
Osun – ₦5.95 billion
Yobe – ₦5.81 billion
Plateau – ₦5.55 billion
Kebbi – ₦5.13 billion
Enugu – ₦4.96 billion
Gombe – ₦4.61 billion
Zamfara – ₦3.77 billion
Abia – ₦2.92 billion
Cross River – ₦2.65 billion
Imo – ₦2.34 billion
Taraba – ₦2.33 billion
The South-West led all regions, with Lagos and Oyo significantly driving the region’s ₦943.87 billion total. Despite its industrial base, Ogun underperformed relative to its potential.
The South-South region followed, contributing a combined ₦379.64 billion, led by Rivers, Bayelsa, Delta, and Akwa Ibom, reflecting the ongoing significance of the oil and gas sector.
In North-Central Nigeria, the VAT take stood at ₦74.89 billion. Kwara and Benue emerged as standouts, though the region still lags far behind its southern counterparts.
The North-West, despite its population size and seven constituent states, generated only ₦60.19 billion collectively. Kano and Jigawa led the way but still fell far behind Lagos alone.
The North-East brought in ₦42.74 billion, with Borno, Adamawa, and Bauchi contributing the bulk, a modest improvement considering the region’s security challenges.
The South-East contributed a combined ₦30.18 billion, with Anambra as the strongest performer. However, the region continues to underperform in proportion to its commercial capacity.
Year-on-Year Comparison (Q1 2024 vs Q1 2025)
Lagos grew by 18.6%, moving from ₦690.7 billion in Q1 2024 to ₦819.62 billion in Q1 2025. Rivers posted a sharp 25% increase, likely driven by oil sector reforms and renewed investment. Oyo’s VAT increased by 13%, underscoring its rising profile as an economic centre in the South-West.
In contrast, northern states saw marginal growth, mostly between 2% and 5%. Some states like Taraba and Zamfara barely moved or regressed slightly, reflecting underlying structural economic weaknesses.
Lagos alone generated more VAT than the bottom 30 states combined, a staggering revelation that continues to highlight the nation’s lopsided economic structure. The South, particularly the South-West and South-South, contributes over 85% of all VAT collected nationwide.
This pattern unearths the urgency for policy reforms and investments in underperforming states. A more even economic development strategy, focused on industrialization, ease of doing business, and tax base expansion, is essential for long-term fiscal sustainability.
As Nigeria confronts mounting debt, inflation, and revenue shortfalls, this VAT performance report should act as a wake-up call for states heavily dependent on federal allocations. Subnational governments must must transition from being allocation-receiving units to revenue-generating engines.