The Minister of Finance, Mrs. Kemi Adeosun has said that 55 Percent of Nigeria’s VAT Revenue Comes From Lagos. The minister gave out this information during a meeting with members of the Progressive Governors’ Forum in Birnin Kebbi
According to her the FCT generates about 20 percent of the VAT revenue while the remaining 25 percent is generated by all the remaining 35 states put together.
She further decried the low level of tax compliance in the country but said that the Federal Government was taking proactive steps to improve the rate of voluntary compliance.
She said, “There is no poor country that has a high tax compliance rate, and no rich country that has a low one. Fifty-five per cent of Nigeria’s VAT is collected in Lagos State; 20 per cent in the FCT; six per cent in Rivers; five per cent in Kano; and one per cent in Kaduna.
“I’m hoping that one day, the finance commissioners (of the states) will stop needing to come to Abuja monthly to share FAAC (Federation Account Allocation Committee’s monthly sharing of federally collected revenue) because IGR will be sufficient.”