Over half of Nigeria’s Value Added Tax (VAT) is collected from Lagos State alone, the Minister for Finance, Mrs. Kemi Adeosun, has said
Speaking at the parley between the Federal Government and Progressive Governors Forum (PGF) in Abuja yesterday, Mrs. Adeosun said the 87 per cent of Nigeria’s VAT is derived from four states and the Federal Capital Territory (FCT).
In other words, only 13 per cent of the VAT comes from 32 other states in the federation.
she said no country in the world with high tax compliance rate is poor, and no rich country has a low tax compliance rate.
“There is no poor country that has a high tax compliance rate, and no rich country that has a low one,” Adeosun said.
Quoting VAT collection data across the country, the minister said: “Fifty per cent of Nigeria’s VAT is collected in Lagos State; 20 per cent in FCT; six per cent in Rivers; five per cent form Kano; one per cent in Kaduna.
“I’m hoping that one day Finance Commissioners will stop needing to come to Abuja monthly to share FAAC, because IGR (internally generated revenue) will be sufficient.”
earlier, the minister complained about the country’s abysmal tax-to-GDP ratio, which she said was at six per cent, stating it to be one of the lowest in the world.
Speaking on: The funding Nigeria needs, the minister said the states must do more to generate revenue from with and not depend on the Federal Government for federal allocation.