Kano, Borno, and Adamawa States have emerged as the leading contributors to the Value Added Tax (VAT) pool in northern Nigeria for 2024, according to a report by Agora Policy, a Nigerian think tank addressing national challenges.
Kano State topped the region with VAT contributions amounting to N77.7 billion, ranking as the fourth-largest contributor nationwide. Adamawa and Borno followed with N42.01 billion and N35.29 billion in contributions, securing the second and third spots in the North, and 10th and 11th nationwide, respectively.
Despite their significant VAT contributions, all 19 northern states received Federation Account Allocation Committee (FAAC) allocations far exceeding their VAT revenues.
Kano received N117.19 billion in FAAC allocations, 150.7% of its VAT contribution. Adamawa was allocated N70.41 billion (167.6%), while Borno received N76.15 billion, representing 215.8% of its VAT contribution.
Niger State, the fourth-highest contributor in the North with N34.84 billion, received N74.79 billion (214.7%), while Taraba contributed N32.37 billion and was allocated N63.24 billion (195.4%).
Other states, including Kwara, Kaduna, and Katsina, also demonstrated this imbalance. Kwara contributed N31.51 billion but received N63.63 billion (201.9%), while Kaduna contributed N30.30 billion and received N88.50 billion (292.1%).
At the lower end, Nasarawa and Kebbi States generated N15.89 billion and N8.77 billion, respectively. However, Nasarawa received N58.16 billion (365.9%), and Kebbi received N66.55 billion, a staggering 758.5% of its VAT contribution.
The report highlights the continued reliance of Nigerian states on federal allocations, especially in regions with low VAT contributions.
