VAT Disbursement Rises 30% to N551.77bn in February 2026 as States Record Broad-Based Growth

VAT allocations to Nigeria’s 36 states and the Federal Capital Territory climbed sharply in February 2026, rising by 30.36% month-on-month to N551.77 billion, according to data compiled from the Office of the Accountant General.

The increase reflects sustained momentum in government revenue collection, following the strong rebound already recorded in January. Net VAT disbursement also rose by 31.41% to N541.89 billion, highlighting improved fiscal inflows across the federation as economic activity remained steady in the early months of the year.

Lagos State once again led the pack by a wide margin, receiving a gross allocation of N111.22 billion, up significantly from N61.00 billion in January. After deductions, the state retained N101.34 billion, reinforcing its position as Nigeria’s dominant VAT contributor. Oyo and Rivers States followed with N24.04 billion and N23.57 billion respectively, while Kano State posted a more modest but steady increase to N17.37 billion. The Federal Capital Territory also broke into the top five with N15.76 billion, alongside Bayelsa State, which recorded a strong jump to N15.07 billion.

Beyond the top-performing states, mid-tier allocations also showed consistent growth. States such as Katsina, Jigawa, Delta, and Kaduna recorded receipts ranging between N12.73 billion and N13.82 billion. Growth rates in this group were more moderate, suggesting that January’s strong rebound had already lifted the baseline for VAT inflows across many states.

At the lower end of the distribution, smaller states also saw steady increases, even if at a slower pace. Taraba, Ebonyi, Yobe, Nasarawa, and Ekiti all recorded gains, with allocations hovering around the N9 billion range. Meanwhile, states like Cross River, Abia, Gombe, Kogi, and Plateau also posted growth, reflecting a broadly positive trend across the federation rather than concentration in just a few economic hubs.

source: nairametrics