Kano’s Fiscal Triumph: Northern Nigeria’s VAT Leader For 2024

Kano’s Fiscal Triumph: Northern Nigeria’s VAT Leader For 2024

Kano, Adamawa, and Borno States have been identified as the top contributors to the Value Added Tax (VAT) pool in northern Nigeria for 2024, according to a report from Agora Policy, a think tank focused on tackling pressing national issues.

Kano State topped the list with VAT contributions reaching ₦77.7 billion, placing it as the fourth-largest contributor in the country. Following closely, Adamawa and Borno States contributed ₦42.01 billion and ₦35.29 billion, respectively, ranking them second and third in the North but placing them 10th and 11th among all 36 states nationwide.

Despite these considerable contributions, all 19 northern states received significantly larger allocations from the Federation Account Allocation Committee (FAAC) than their VAT revenues warranted. This trend is consistent across the country, with Lagos, Rivers, and Oyo being the only states receiving less than they contributed.

Kano State received ₦117.19 billion in FAAC allocations, accounting for 150.7% of its VAT contribution. Adamawa received ₦70.41 billion (167.6%), while Borno’s allocation of ₦76.15 billion represented 215.8% of its VAT input.

Niger State, the fourth-largest VAT contributor in the North, contributed ₦34.84 billion but received ₦74.79 billion in allocations, which is 214.7%. Taraba’s contributions of ₦32.37 billion were met with ₦63.24 billion (195.4%) in FAAC allocations.

Other northern states like Kwara, Kaduna, and Katsina also reflect this disparity. Kwara contributed ₦31.51 billion but received ₦63.63 billion (201.9%), while Kaduna’s contribution of ₦30.30 billion led to an allocation of ₦88.50 billion (292.1%). Katsina contributed ₦22.08 billion but was allocated ₦85.59 billion, a staggering 387.6%.

Conversely, Nasarawa and Kebbi States generated lower VAT revenues, with figures of ₦15.89 billion and ₦8.77 billion, respectively. However, Nasarawa received ₦58.16 billion (365.9%) and Kebbi was allocated ₦66.55 billion, an extraordinary 758.5% of its VAT contribution.

Notably, Imo State from the Southeast contributed the least nationwide at ₦4.38 billion. Despite this, it was granted ₦70.70 billion in FAAC allocations, an incredible 1,613% of its VAT revenue.

The report underscores a widespread trend of financial dependency on federal allocations among Nigerian states, particularly in areas with lower VAT contributions.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp