VAT Disbursement in Nigeria Jumps 30% to N551bn as Lagos Leads Again

VAT Disbursement in Nigeria Jumps 30% to N551bn as Lagos Leads AgainVAT disbursement in Nigeria recorded a strong increase in February 2026, rising by 30.36% month-on-month to N551.77 billion, up from N423.25 billion in January.

Data compiled from the Office of the Accountant General shows that net VAT disbursement in Nigeria also climbed by 31.41% to N541.89 billion, reflecting sustained growth in tax revenue and economic activity across the country.

The latest figures confirm that VAT disbursement in Nigeria continues to trend upward following January’s sharp rebound, signaling improved fiscal flows to states.

Breakdown of VAT Disbursement in Nigeria by States

All states benefited from the increase in VAT disbursement in Nigeria, with major economic hubs maintaining dominance.

• Lagos State remained the highest recipient, with gross VAT rising to N111.22 billion from N61.00 billion — an 82.32% increase. After a deduction of N9.89 billion, its net stood at N101.34 billion.
• Oyo State moved to second place with N24.04 billion, up 52.10%.
• Rivers State followed with N23.57 billion, a 39.50% increase.
• Kano State recorded N17.37 billion, showing moderate growth of 6.43%.
• Federal Capital Territory entered the top five with N15.76 billion.

Meanwhile, Bayelsa State posted one of the strongest gains, rising by 60.84% to N15.07 billion.

Notably, only Lagos State recorded VAT deductions, while other states had nearly identical gross and net allocations.

Mid-Tier States Show Steady Growth

The next group of states also saw consistent increases in VAT disbursement in Nigeria.

• Katsina State
• Jigawa State
• Delta State
• Kaduna State

These states recorded allocations ranging between N12.73 billion and N13.82 billion, with growth rates between 6.14% and 16.08%.

This suggests that while growth remains positive, January’s surge had already created a higher base for these regions.

Lower-Tier States Maintain Upward Trend

At the lower end, VAT disbursement in Nigeria still showed encouraging growth across smaller states:

• Taraba State — N9.37 billion (+15.60%)
• Ebonyi State — N9.45 billion (+13.61%)
• Yobe State — N9.76 billion (+18.82%)
• Nasarawa State — N9.77 billion (+9.52%)
• Ekiti State — N9.83 billion (+9.74%)

Other states like Cross River State, Abia State, Gombe State, Kogi State, and Plateau State recorded allocations between N9.97 billion and N10.47 billion, with growth rates up to 23.01%.

What the Trend Means for Nigeria’s Economy

The consistent rise in VAT disbursement in Nigeria highlights strong tax collection performance and stable economic activity in early 2026.

Following January’s 74% surge, the additional 30% increase in February suggests that the growth is not a one-time rebound but part of a sustained upward trend.

This momentum indicates:

• Improved revenue generation across states
• Stronger economic participation
• Increased fiscal capacity for subnational governments

January Surge Laid the Foundation

Earlier reports showed that VAT disbursement in Nigeria jumped significantly in January 2026, rising to N423.25 billion from N242.92 billion in December 2025.

During that period:

• Lagos State led with N61.00 billion
• Rivers State, Kano State, Oyo State, and Kaduna State all recorded strong growth
• Even lower-ranked states saw gains between 57% and 79%, showing nationwide improvement

Final Take on VAT Disbursement in Nigeria

The steady rise in VAT disbursement in Nigeria underscores a strengthening revenue environment for states in 2026.

With all regions benefiting from increased allocations, the data points to a more balanced economic recovery and improved fiscal outlook across the country.

If the trend continues, VAT disbursement in Nigeria could play a crucial role in funding development projects and supporting economic stability nationwide.