Nigeria’s 36 state governments received a combined N551.77 billion as their share of Value Added Tax (VAT) in January 2026, reflecting a significant boost driven by the implementation of new tax laws.
The figure represents a 30.4 per cent increase from the N423.25 billion shared among states in December 2025, highlighting a strong rise in revenue allocation from the N1.08 trillion VAT pool generated in January.
The surge marks an important shift in Nigeria’s fiscal landscape, as tax reforms begin to translate into higher revenue flows for subnational governments. Analysts say the development could strengthen states’ capacity to fund infrastructure, social services, and other development priorities.
The increased VAT distribution also underscores the growing importance of consumption taxes in Nigeria’s revenue structure, particularly as governments seek to reduce dependence on volatile oil earnings.
