Fresh data from the Federal Inland Revenue Service (FIRS) reveals significant disparities between Value Added Tax (VAT) contributions and allocations across the South-East states of Nigeria in August 2024.
Contributions vs Allocations:
• Anambra State: Contributed ₦4.28 billion and received ₦6.66 billion.
• Ebonyi State: Contributed ₦1.90 billion and was allocated ₦5.20 billion.
• Enugu State: Contributed ₦1.08 billion and received ₦5.73 billion.
• Abia State: Contributed ₦663.42 million and was allocated ₦5.43 billion.
• Imo State: Contributed ₦235.41 million but benefited ₦6.01 billion in allocations.
Redistribution Trends
The South-East states collectively contributed ₦8.16 billion to the national VAT pool but received ₦29.03 billion in allocations, demonstrating a significant redistribution of federal resources to the region.
Anambra emerged as the highest contributor in the South-East, while Imo contributed the least but received the second-largest allocation. The figures highlight the reliance of some states on the federal revenue-sharing formula, which is designed to support states with lower VAT contributions.
Source: #TheCableIndex
