VAT Allocations to Nigerian States Surge 74% in January 2026

In January 2026, Value Added Tax (VAT) allocations to Nigerian states surged by 74% to N423 billion, a notable increase from N242.92 billion recorded in December 2025. This sharp rebound indicates a stronger revenue flow for subnational governments, as compiled by the Nairametrics Research Team.

The net VAT allocation increased by 77.72% to N412.37 billion during this period, reflecting a broad-based rise in VAT distribution across states. Top-performing states, including Katsina, Jigawa, Delta, and Akwa Ibom, recorded significant gains, while lower-ranked states also benefited from higher allocations.

The allocations ranged from N10.82 billion to N11.90 billion for the stronger states, with others like Nasarawa, Abia, Ekiti, Kwara, and Kebbi receiving between N8.92 billion and N9.09 billion, showing a growth rate of 71.90%. Overall, the January VAT data highlights a strong rebound in revenue distribution across states, suggesting improved revenue performance and better tax compliance amid stronger economic activity.