₦airaland Forum

Only four states—Lagos, Rivers, Oyo, and Bayelsa—received less than they contributed.

An analysis of revenue allocation data from Nigeria’s Federation Account Allocation Committee (FAAC) has highlighted some disparities in the redistribution of Value Added Tax (VAT) proceeds among states.

Agora Policy, in a data analysis shared on its X account on Tuesday, highlighted inequalities in VAT distribution among states.

Data analysis from the policy think tank highlighted how Lagos State, the top VAT contributor for the first 10 months of 2024, was allocated 16.78 per cent of its contributions. Meanwhile, Imo State received a staggering 1,715.98 per cent of its contributions during the same period.

The data, which covers VAT contributions and disbursements from January to October 2024, reveals some distortions in how funds are distributed under the federal system.

Lagos contributed N2.21 trillion in VAT, accounting for the highest share of the total pool. Meanwhile, Imo’s contributions stood at N3.33 billion, the lowest among the states. But Imo received N57.09 billion, a figure significantly higher than what it contributed.

The report categorised states based on the proportion of VAT they received relative to their contributions.

Only four states—Lagos, Rivers, Oyo, and Bayelsa—received less than they contributed.

Seventeen states, including Kano and Kaduna, received between 101per cent and 300 per cent of their contributions, while eleven states, such as Bauchi and Ekiti, were allocated 301 per cent to 500 per cent.

Four states—Imo, Abia, Cross River, and Kebbi—benefited the most, each receiving more than 500 per cent of their VAT contributions.

Agora Policy’s analysis highlights Lagos and Imo as outliers.

For the ten months under review, the highest total VAT allocation to a state was N371.09 billion. In contrast, Nasarawa received the least allocation, totalling N47.07 billion with a difference of N324.02 billion.

Value Added Tax (VAT) remains a crucial revenue source in Nigeria’s fiscal framework, with collections distributed among the federal, state, and local governments through a set formula.

The federal government currently retains 15 per cent, states receive 50 per cent, while local governments are allocated the remaining 35 per cent.

Critics argue that the current inter-state sharing formula—based on factors such as population, equality, and landmass—does not favour high-revenue states like Lagos and Rivers which contribute significantly to VAT collections.

Earlier in October, President Bola Tinubu submitted four fiscal bills to the National Assembly, including the Nigeria Tax Bill 2024 and the Tax Administration Bill.

Among the proposed measures is a plan to reduce the federal government’s VAT share to 10 per cent, while states’ allocations would reflect a derivation principle, allowing states to earn more based on the revenue collected within their borders.

However, the new tax proposals have generated controversy, particularly from northern elites, who fear the reforms could place their region at a disadvantage.

Source: https://www.premiumtimesng.com/business/business-news/757252-data-shows-lagos-gets-17-of-vat-contributions-as-imo-takes-1716.html

Imolites will say that without them, Nigeria will collapse

simpleseyi:
Imolites will say that without them, Nigeria will collapse

Osunlights, Oyolites and Ekitilites will say without them no money in Nigeria yet, they are the highest Oni igbese in Nigeria.

Do you know that prior to Yaradua's intervention and passage of the 13% derivative to oil producing states , all SE states got far much higher as federal allocation than oil producing states in the SS?

Obasanjo proposed 25% to oil producing states but SE legislators in the NASS aligned with the core north to kill the bill while hiding under opposition to Obasanjo's third term agenda.

Have you heard any of their elected officials wade into the VAT issue?

I rest my case.

AmazingGenius:
Only four states—Lagos, Rivers, Oyo, and Bayelsa—received less than they contributed.

An analysis of revenue allocation data from Nigeria’s Federation Account Allocation Committee (FAAC) has highlighted some disparities in the redistribution of Value Added Tax (VAT) proceeds among states.

Agora Policy, in a data analysis shared on its X account on Tuesday, highlighted inequalities in VAT distribution among states.

Data analysis from the policy think tank highlighted how Lagos State, the top VAT contributor for the first 10 months of 2024, was allocated 16.78 per cent of its contributions. Meanwhile, Imo State received a staggering 1,715.98 per cent of its contributions during the same period.

The data, which covers VAT contributions and disbursements from January to October 2024, reveals some distortions in how funds are distributed under the federal system.

Lagos contributed N2.21 trillion in VAT, accounting for the highest share of the total pool. Meanwhile, Imo’s contributions stood at N3.33 billion, the lowest among the states. But Imo received N57.09 billion, a figure significantly higher than what it contributed.

The report categorised states based on the proportion of VAT they received relative to their contributions.

Only four states—Lagos, Rivers, Oyo, and Bayelsa—received less than they contributed.

Seventeen states, including Kano and Kaduna, received between 101per cent and 300 per cent of their contributions, while eleven states, such as Bauchi and Ekiti, were allocated 301 per cent to 500 per cent.

Four states—Imo, Abia, Cross River, and Kebbi—benefited the most, each receiving more than 500 per cent of their VAT contributions.

Agora Policy’s analysis highlights Lagos and Imo as outliers.

For the ten months under review, the highest total VAT allocation to a state was N371.09 billion. In contrast, Nasarawa received the least allocation, totalling N47.07 billion with a difference of N324.02 billion.

Value Added Tax (VAT) remains a crucial revenue source in Nigeria’s fiscal framework, with collections distributed among the federal, state, and local governments through a set formula.

The federal government currently retains 15 per cent, states receive 50 per cent, while local governments are allocated the remaining 35 per cent.

Critics argue that the current inter-state sharing formula—based on factors such as population, equality, and landmass—does not favour high-revenue states like Lagos and Rivers which contribute significantly to VAT collections.

Earlier in October, President Bola Tinubu submitted four fiscal bills to the National Assembly, including the Nigeria Tax Bill 2024 and the Tax Administration Bill.

Among the proposed measures is a plan to reduce the federal government’s VAT share to 10 per cent, while states’ allocations would reflect a derivation principle, allowing states to earn more based on the revenue collected within their borders.

However, the new tax proposals have generated controversy, particularly from northern elites, who fear the reforms could place their region at a disadvantage.

Source: https://www.premiumtimesng.com/business/business-news/757252-data-shows-lagos-gets-17-of-vat-contributions-as-imo-takes-1716.html

Tell your Son to restructure Nigeria if u don't like it

Lagos VATs belongs to Nigerians. Stop wasting your time.

DomPerignon:
Do you know that prior to Yaradua's intervention and passage of the 13% derivative to oil producing states , all SE states got far much higher as federal allocation than oil producing states in the SS?

Obasanjo proposed 25% to oil producing states but SE legislators in the NASS aligned with the core north to kill the bill while hiding under opposition to Obasanjo's third term agenda.

Have you heard any of their elected officials wade into the VAT issue?

I rest my case.

SE aligned with the north to kill 25% oil derivation when SE is an oil producing region?
When will you guys stop this your devilish propaganda against the east?
It is on record that SE delegates has to walk out together with SS delegates before Nigerians accept to pay oil producing states 13% during Abacha constitutional conference.

paramakina202:
SE aligned with the north to kill 25% oil derivation when SE is an oil producing region?
When will you guys stop this your devilish propaganda against the east?
It is on record that SE delegates has to walk out together with SS delegates before Nigerians accept to pay oil producing states 13% during Abacha constitutional conference.

When did Imo, Anambra and Abia started commercial oil drilling? And what is the total combined daily output today?

FYI, SE only began commercial operation during GEJ's and Yaradua's tenure.

The oil field in Anambra owned and operated by the former secretary to the Commonwealth who happens to be an Anambra man (forgot his name) began operation during GEJ era.

This was long after Yaradua was able to secure a negotiated 13% to oil producing states. When this passed , that was when SE began lobbying both Yaradua and GEJ to open up oil exploration in the SE.

DomPerignon:
When did Imo, Anambra and Abia started commercial oil drilling? And what is the total combined daily output today?

FYI, SE only began commercial operation during GEJ's and Yaradua's tenure.

The oil field in Anambra owned and operated by the former secretary to the Commonwealth who happens to be an Anambra man (forgot his name) began operation during GEJ era.

This was long after Yaradua was able to secure a negotiated 13% to oil producing states. When this passed , that was when SE began lobbying both Yaradua and GEJ to open up oil exploration in the SE.

The Yoruba narrative on emeka anyaoku and orient continues

This people and useless propaganda

You don’t know his name an you’re giving your Yoruba story about him

Yoruba people sef

DomPerignon:
When did Imo, Anambra and Abia started commercial oil drilling? And what is the total combined daily output today?

FYI, SE only began commercial operation during GEJ's and Yaradua's tenure.

The oil field in Anambra owned and operated by the former secretary to the Commonwealth who happens to be an Anambra man (forgot his name) began operation during GEJ era.

This was long after Yaradua was able to secure a negotiated 13% to oil producing states. When this passed , that was when SE began lobbying both Yaradua and GEJ to open up oil exploration in the SE.

You lied again it seems lying is your hobby.Abia and Imo state have been members of Niger Delta oil producing states since OBJ time and in fact Onyema Ugochukwu was the first executive chairman of NDDC from Abia state.
13% derivation sharing formular for oil producing states was approved by Abacha in 1995 and this is what a Niger Deltan delegate at the conference have to say about the role Igbo leaders played in helping their Niger Delta brothers to secure the 13% derivation and how Yoruba delegates and the north refused to support it.
In this era Yoruba ronu can no longer lie and get away with it.

Go to court

Terrorism has weekend Igboland. So we need a lot of Federal support to recover. Federal government must support the restoration of security to South East and wipe out all criminal elements making life difficult.
IPOB-ESN and BRF terrorism are crippling businesses, so we are not able to contribute to VATs as much as we take.

paramakina202:
You lied again it seems lying is your hobby.Abia and Imo state have been members of Niger Delta oil producing states since OBJ time and in fact Onyema Ugochukwu was the first executive chairman of NDDC from Abia state.
13% derivation sharing formular for oil producing states was approved by Abacha in 1995 and this is what a Niger Deltan delegate at the conference have to say about the role Igbo leaders played in helping their Niger Delta brothers to secure the 13% derivation and how Yoruba delegates and the north refused to support it.
In this era Yoruba ronu can no longer lie and get away with it.

See this one.

Obasanjo embedded 25% to oil producing states in his third term executive constitutional amendment bill.

Why will SS senators oppose such and stage a walkout ?

How can you even say that under military dictatorship with unelected military administrators who mostly were not indigenes of the state they governed, that there was anything like 13% to oil producing states?

The sharing formula under military dictatorship was purely based on population and landmass and this saw SE states with high population getting more than any state in the SS.

Also, OMPADEC which later transformed to NDDC was formed by the military to address the cheating by directly setting aside funds for infrastructural projects in the SS oil producing states.

Lol. I was thinking the comma in 1,716% was a mistake, and it was supposed to be 1.716%. Toh, as easy money don dey involved, e reach for northern governors to unite to frustrate the tax bil.

Na from the slum them Dey even survive self,they will still bite the fingers feeding them as usual.if they don’t respect Lagos,Lagos has its way of retrieving what ever it gives to ingrates.

Another Yoruba vs Igbo thread

EmeeNaka:
Terrorism has weekend Igboland. So we need a lot of Federal support to recover. Federal government must support the restoration of security to South East and wipe out all criminal elements making life difficult.
IPOB-ESN and BRF terrorism are crippling businesses, so we are not able to contribute to VATs as much as we take.

The terrorism in your land is self-inflicted. Not from outside sources but among the Ibos/Igbos, hence solve your problem.

Lanretoye:
Na from the slum them Dey even survive self,they will still bite the fingers feeding them as usual.if they don’t respect Lagos,Lagos has its way of retrieving what ever it gives to ingrates.

Lol

Eboes are leeches.

kaltonga:
Osunlights, Oyolites and Ekitilites will say without them no money in Nigeria yet, they are the highest Oni igbese in Nigeria.

slave talk

The predators has finally been exposed.!

AmazingGenius:
Source: https://www.premiumtimesng.com/business/business-news/757252-data-shows-lagos-gets-17-of-vat-contributions-as-imo-takes-1716.html

That FIRS man was yarning thrash apparently.Inroducing Tax bills without proper data analysis.

DomPerignon:
Do you know that prior to Yaradua's intervention and passage of the 13% derivative to oil producing states , all SE states got far much higher as federal allocation than oil producing states in the SS?

Obasanjo proposed 25% to oil producing states but SE legislators in the NASS aligned with the core north to kill the bill while hiding under opposition to Obasanjo's third term agenda.

Have you heard any of their elected officials wade into the VAT issue?

I rest my case.

You are silly! No common sense

Publish the data for to see and analyze.

This map is better for visibility sake.

Nairaland.com needs a community note. I don't know why Reno Omokri and his Associates with multiple monikers should be allowed to run blatant lies and obfuscation in the name of ethnic bigotry and outright stvpïdity.

Imagine what nonsense I read before I finally gave up on the credibility of information churned out from this site.

Let's have regional governments they cry. Let's have resource control so that each state will contribute to the center, they cry. What do they really want?

DomPerignon:
Do you know that prior to Yaradua's intervention and passage of the 13% derivative to oil producing states , all SE states got far much higher as federal allocation than oil producing states in the SS?

Obasanjo proposed 25% to oil producing states but SE legislators in the NASS aligned with the core north to kill the bill while hiding under opposition to Obasanjo's third term agenda.

Have you heard any of their elected officials wade into the VAT issue?

I rest my case.

All you do every single day of your life is come here just to spread lies, falsehood, and propaganda against the Igbos.

The truth is that they are not the reason you are frustrated. The Igbos are not responsible for Tinubu's bolekaja economic policy prescriptions that are causing your frustrations and anger.

Channel your frustrations and anger appropriately towards Tinubu and leave the Igbos out of your frustrations

A lot of Nairalanders are ignorant of what VAT really is and how it's generated..

This is not fair o!

Bobloco:
All you do every single day of your life is come here just to spread lies, falsehood, and propaganda against the Igbos.

The truth is that they are not the reason you are frustrated. The Igbos are not responsible for Tinubu's bolekaja economic policy prescriptions that are causing your frustrations and anger.

Channel your frustrations and anger appropriately towards Tinubu and leave the Igbos out of your frustrations

Why not talk about the VAT and what your appointees have being contributing to the bill developmental process as he said?

All these una diversion tactics is stale!

Stay on the lane!