Analysis of Federal Account Allocation Committee (FAAC) documents shows that Lagos State accounted for N3.4 trillion of the N6.5 trillion Non-import Value Added Tax (VAT) collected by the Nigeria Revenue Service (NRS) in 2025. This represents 52% of total local VAT collected nationwide.
Geographical analysis of VAT collections revealed that the South West zone led contributions with N3.97 trillion, followed by the South-South with N1.29 trillion, and the North Central, including the FCT, with N600.3 billion.
Overall, N8.6 trillion was generated as VAT in 2025, with the NRS accounting for N6.5 trillion in local VAT and the Nigeria Customs Service contributing N2.03 trillion.
Monthly collection data showed fluctuations throughout the year:
- January: N771.8bn
- February: N654.4bn
- March: N637.6bn
- April: N642.2bn
- May: N742.8bn
- June: N678.1bn
- July: N687bn
- August: N722.6bn
- September: N872.6bn
The data highlights Lagos State’s pivotal role in driving VAT revenue and underscores the economic dominance of the South West within Nigeria’s tax landscape.
