Lagos State Leads in VAT Collection, Contributes 52% of Nigeria's Non-Import VAT Revenue in 2025

In 2025, Lagos State emerged as a significant contributor to Nigeria's revenue collection, accounting for 52% of the non-import VAT collected in the country. The Nigeria Revenue Service (NRS) collected a total of N6.5 trillion, with N3.4 trillion coming from non-import VAT.

The analysis conducted by the Federal Account Allocation Committee (FAAC) highlighted that the South West Zone, particularly Lagos, led in VAT collection with N3.97 trillion, followed by the South-South with N1.29 trillion. The North Central region, including the Federal Capital Territory (FCT), contributed N600.3 billion.

The report also outlined monthly collection figures, showing fluctuations throughout the year. The revenue collection data indicated varying contributions from different states, with Lagos State leading at N831.5 billion, followed by River State at N370.2 billion and the FCT at N334.3 billion.

The analysis underscored the importance of VAT in revenue generation and highlighted ongoing tax reform efforts led by Taiwo Oyedele and introduced by President Bola Tinubu in 2024.