NEWS
FAAC February 2026 VAT Distribution as Lagos, Rivers Lead Revenue Contributions as Several States Receive Far Above Their Input into National VAT Pool
Fresh figures released from the February 2026 disbursement by the Federation Account Allocation Committee (FAAC) have revealed the sharp contrast between what states contributed to the national Value Added Tax (VAT) pool and what they eventually received from the federation allocation.
The breakdown highlights the dominance of major commercial and oil-producing states such as Lagos and Rivers in VAT generation, while many other states received allocations significantly higher than their actual contributions, underscoring the redistributive nature of Nigeria’s fiscal structure.
According to the figures, Lagos State remained the highest VAT contributor in the country, generating a massive ₦215.34 billion into the national VAT pool. However, the state received ₦51.93 billion in allocation, representing 24.12 percent of its contribution.
Rivers State followed as the second-highest contributor with ₦110.78 billion, while receiving ₦29.22 billion, equivalent to 26.37 percent of its total contribution.
Oyo State emerged as the third-largest contributor with ₦28.30 billion and received ₦12.97 billion, representing 45.82 percent. The Federal Capital Territory (FCT) contributed ₦20.46 billion and got ₦9.37 billion, amounting to 45.78 percent.
Bayelsa State contributed ₦19.81 billion and received ₦9.38 billion, while Delta State generated ₦14.42 billion and got ₦9.47 billion from the VAT allocation. Edo State also posted strong figures with ₦13.34 billion contribution and ₦8.83 billion receipt.
Kano State contributed ₦12.02 billion and received ₦11.56 billion, making it one of the few states whose allocation nearly matched its contribution at 96.22 percent.
The report further showed that several states received far above what they generated internally through VAT.
Borno State contributed ₦6.23 billion but received ₦7.86 billion, while Jigawa generated ₦5.95 billion and got ₦7.90 billion. Akwa Ibom contributed ₦5.78 billion and received ₦7.66 billion.
Niger State generated ₦4.28 billion but received ₦7.38 billion, as Sokoto contributed ₦4.06 billion and obtained ₦7.21 billion. Adamawa generated ₦3.89 billion and got ₦6.92 billion.
Other states such as Gombe, Kwara, Kebbi, Plateau, Kaduna, Ogun, Nasarawa, Anambra, Ondo, Ekiti and Yobe all received allocations that were significantly higher than their VAT contributions.
Abia State contributed ₦1.93 billion into the VAT pool but received ₦6.37 billion, representing 329.11 percent of its contribution. Bauchi generated ₦1.88 billion and received ₦7.24 billion, while Osun contributed ₦1.84 billion and got ₦6.63 billion.
Taraba contributed ₦1.75 billion and received ₦6.07 billion, while Kogi generated ₦1.65 billion and obtained ₦6.53 billion, representing 395.48 percent of its contribution.
Katsina State contributed ₦1.46 billion but received ₦7.71 billion, amounting to 526.85 percent. Ebonyi generated ₦1.39 billion and got ₦5.94 billion, while Enugu contributed ₦1.30 billion and received ₦6.45 billion.
Zamfara State posted ₦1.27 billion contribution and received ₦6.44 billion. Benue contributed ₦1.05 billion and got ₦6.86 billion.
Imo State contributed ₦905.99 million but received ₦6.70 billion, representing 739.16 percent of its contribution, while Cross River recorded one of the widest gaps after contributing ₦679.58 million and receiving ₦6.14 billion, amounting to 903.89 percent.
The latest FAAC figures have once again reignited conversations around fiscal federalism, revenue allocation, economic productivity, and the ongoing debate over VAT derivation and sharing formula among states in Nigeria.
Economic analysts believe the figures reflect the heavy concentration of economic activities in a few states, particularly Lagos and Rivers, while also exposing the high dependence of many states on federally redistributed revenue to sustain governance and development projects.