Benue Generates ₦12.36bn VAT in Q1 2025, Abia Records ₦2.92bn

Benue State recorded a Value Added Tax (VAT) revenue of ₦12.36 billion in the first quarter of 2025, significantly outpacing Abia State, which generated ₦2.92 billion within the same period, according to data from the Federal Account Allocation Committee (FAAC).

The figures highlight a notable disparity in VAT earnings among Nigerian states, reflecting variations in commercial activity, economic structure, and tax administration efficiency. Benue’s performance places it in the middle tier of VAT-generating states, indicating a relatively active formal economy and functioning revenue system.

Abia State, however, ranked among the lowest VAT contributors in the country. Despite its position in a traditionally commercial region, the state continues to grapple with challenges such as a high rate of informal economic activities, limited enforcement of tax compliance, and structural issues affecting business growth.

In comparison, Lagos State generated the highest VAT revenue nationwide with ₦819.62 billion, followed by Rivers State with ₦278.23 billion in the same quarter. These two states contributed a significant portion of the total VAT collected across the country.

The disparity has reignited debates over the fairness of Nigeria’s VAT sharing formula, as many low-revenue states rely heavily on federal allocations rather than internally generated revenue. Economists have called on underperforming states to improve their revenue collection systems, expand the tax base, and implement reforms to boost economic productivity.

As non-oil revenue continues to gain prominence in national budgeting, the VAT performance of states remains a critical indicator of fiscal health and economic development.