FG, 21 States Target N2.5tn VAT Revenue In 2025

Nigeria’s Federal Government and 21 states have set a combined Value Added Tax (VAT) revenue target of N2.5 trillion for 2025.

This represents a significant increase of N1 trillion (65.8 percent) compared to the N1.527 trillion projected in 2024.

According to financial reports released by the Federation Account Allocation Committee, as revealed by Punch, the Federal Government’s share of VAT revenue is projected to rise to N972 billion in 2025, up from N512.8 billion in 2024.

The 21 states, including Kebbi, Kaduna, Ekiti, Oyo, Osun, and others, have also made significant VAT revenue projections for 2025.

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Kebbi State, for instance, anticipates N87.3 billion, up from N41 billion in 2024, while Kaduna State’s VAT revenue is projected at N57.8 billion, up from N48.2 billion in its 2024 budget.

Other states, such as Ogun, Enugu, Borno, Ondo, Kano, and Anambra, have also made significant VAT revenue projections for 2025, ranging from N39 billion to N97.3 billion.

It’s worth noting that the National Assembly is considering a bill to increase VAT from 7.5% to 10% by 2025, and to 12.5% by 2026

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