More than half of Nigeria’s VAT comes from Lagos
Speaking at the parley between the federal government and progressive governors forum (PGF) in Abuja on Tuesday, Adeosun said the 87 percent of Nigeria’s VAT is derived from four states and the Federal Capital Territory (FCT).
In other words, only 13 percent of Nigeria’s VAT comes from 32 other states in the federation.
According to her no country in the world with high tax compliance rate is poor, and no rich country has a low tax compliance rate.
Quoting current VAT collection data across Nigeria, the minister said “55% of Nigeria’s VAT is collected in Lagos State. 20% in FCT, 6% in Rivers, 5% in Kano, 1% in Kaduna”.
“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.”