Lagos Alone Generates 55% Of Nigeria’s VAT – Adeosun

Minister of Finance, Kemi Adeosun has stated that Lagos State alone generates about 55 percent of the Nigeria’s value added tax (VAT).

Adeosun made the disclosure during a parley between the federal government and Progressive Governor’s Forum (PGF) in Abuja on Tuesday,

Speaking on the topic “The Funding Nigeria Needs, the minister said 87 percent of Nigeria’s VAT Comes from four states and the Federal Capital Territory (FCT).

According to the current VAT collection data, 13 percent of Nigeria’s VAT comes from the 32 other states in the country.

“55% of Nigeria’s VAT is collected in Lagos State. 20% in FCT, 6% in Rivers, 5% in Kano, 1% in Kaduna.

She called on states to do more to generate revenue internally and not depend solely on federal allocation.

“I’m hoping that one day Finance Commissioners will stop needing to come to Abuja monthly to share FAAC, because IGR (internally generated revenue) will be sufficient.”

“There is no poor country that has a high tax compliance rate, and no rich country that has a low one,” Adeosun said.
The minister had in the past said Nigeria’s abysmal tax-to-GDP ratio is one of the lowest in the world.