States Earn N1.18 Trillion VAT Revenue in Q1 2026

In the first quarter of 2026, Nigerian states generated N1.18 trillion in Value Added Tax (VAT) revenue, reflecting a significant increase of N214.78 billion or 22.35% compared to N960.97 billion during the same period in 2025. This increase is attributed to the new VAT sharing formula approved under the National Tax Act by President Bola Tinubu, which reduced the federal government's share from 15% to 10% and raised the states' share from 50% to 55%.

The Federal Account Allocation Committee (FAAC) reported that the total VAT pool distributed among the federal, state, and local governments amounted to N2.14 trillion for Q1 2026. The federal government received N213.77 billion under the new formula, a decrease from N320.66 billion under the previous arrangement, resulting in an additional N106.89 billion for the states.

The VAT revenue distribution in January, February, and March 2026 showed fluctuations, with a notable decline in February's receipts compared to January.