The month-on-month increase in the net distributable VAT was N156.72bn, also representing an 18.5 per cent increase. Previously, the Federal Government received 15 per cent, states 50 per cent, and Local Governments 35 per cent. In December, under the old 15 per cent formula, the Federal Government’s VAT share stood at N126.98bn. State governments received N767.29bn, local governments got N517.28bn, while the 13 per cent derivation share amounted to N90.19bn. According to him, simply reducing the number of taxes without adjusting the VAT rate could weaken the government’s revenue base.

Source: Punch March 04, 2026 18:57 UTC