States' VAT allocations jump to N423 billion in January

Value-added-tax allocations to Nigeria's states rose to N423.25 billion in January 2026, up 74 percent from N242.92 billion in December 2025, according to data compiled from the Office of the Accountant-General of the Federation.

After deductions, net VAT allocation was N412.37 billion, a 77.72 percent increase. The wider Federation Account Allocation Committee distribution left states with a net N703.26 billion from the month's revenue pool, 7.18 percent more than in December.

Why the monthly jump matters

VAT is one of the most important non-oil revenue lines shared across the federation. A stronger distribution gives state governments more room to fund payroll, services and capital projects, although the gain is not the same as a permanent increase in internally generated revenue.

The December base was unusually low, so the percentage increase overstates the underlying change in fiscal capacity. Gross allocations are also reduced by external-debt service and other obligations before cash reaches state accounts.

Sources

Office of the Accountant-General of the Federation, FAAC Allocation — January 2026; Nairametrics, “VAT allocations to states rise 74% to N423 billion in January 2026” (1 April 2026).