Nigerian States Receive N2.37tn VAT Revenue in H1 2026

In the first half of 2026, Nigerian states received N2.37 trillion in Value Added Tax (VAT) revenue, an increase of N451.25 billion compared to the same period in 2025. This represents a 23.48% rise from N1.92 trillion in the first six months of 2025, according to the Federal Account Allocation Committee report and data from the National Bureau of Statistics.

The total VAT revenue distributed among federal, state, and local governments during this period was N4.31 trillion, which is 12.26% higher than the N3.84 trillion distributed in the corresponding period of 2025. The new tax regime, effective January 1, 2026, introduced a vertical sharing formula where the federal government receives 15%, states 50%, and local governments 35%.

This change increased the states' share from 50% to 55%, resulting in an additional N215.72 billion for the states. The highest monthly VAT allocation for a state in the first half of 2026 was N551.77 billion.