The Nigerian government and 21 of the 36 states in the federation have projected a combined Value-Added Tax (VAT) revenue of N2.5 trillion for 2025 in their respective budget estimates, excluding additional funds that may accrue from the implementation of the controversial tax reform bills.
VAT is a consumption tax on goods and services that is levied at each stage of the supply chain where value is added.
According to reports, VAT revenue collected under the current administration increased by N549 billion in just six months. This figure was derived from financial reports released by the Federation Account Allocation Committee between October 2023 and March 2024.
The Nigerian government’s share of VAT revenue was N512.8bn in 2024, but it is expected to rise to N972bn in 2025.
Similarly, Kebbi State, which received N41bn from VAT in 2024, expects N87.3bn this year, according to an analysis of the 2025 budget documents from the Nigerian government and 21 states. These states include Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta.
Kaduna State’s 2024 budgeted N48.2 billion in VAT revenue; this is expected to increase to N57.8 billion.
This year, Ekiti State expects to collect N54.9 billion in VAT, up from N52.6 billion in 2024.
With a 2024 VAT revenue of N78.8 billion, Oyo State forecasted N144 billion for 2025, while Osun State anticipates N78.1 billion, up from N45.3 billion the previous year.
N85 billion, N74.9 billion, N87.3 billion, N71.5 billion, N97.3 billion, N85.9 billion, N50.8 billion, N39 billion, and N92.4 billion are the estimated VAT revenues for 2025 in Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, and Anambra, respectively.
N57.7 billion, N44 billion, N49.4 billion, N30.3 billion, N76.6 billion, N46.9 billion, N36.5 billion, N30 billion, and N58.4 billion were their respective 2024 predictions.
Similarly, for 2025, the estimated VAT revenues for Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta are N60.6 billion, N64.6 billion, N80 billion, N78.5 billion, N70 billion, N52.5 billion, and N46.6 billion, respectively. They projected N40 billion, N50.6 billion, N45 billion, N45 billion, N47 billion, and N45.7 billion for 2024.
