VAT REALITY CHECK – SOUTH-WEST CARRIES BULK, OTHERS TAKE MORE THAN THEY BRING

Data from Federation Account Allocation Committee compiled by TheCableIndex for February 2026 lays bare Nigeria’s VAT distribution pattern, with a sharp gap between what regions generate and what they receive.

The South-west dominated contributions with N252.78bn but got back only N91.44bn, translating to 36.17% of its input. The South-south followed with N164.81bn contributed and N70.70bn received, about 42.90%.

In contrast, northern zones and the South-east drew significantly more than they generated. The North-central posted N36.20bn in contributions but received N49.29bn, amounting to 136.17%. The North-west contributed N30.74bn and took N55.75bn, or 181.37%. The North-east recorded N19.75bn in contributions but received N40.76bn, standing at 206.44%.

The South-east showed the widest gap, contributing just N7.95bn while receiving N32.56bn, an outsized 409.46%.

The figures reinforce a redistribution framework where high-yield regions, particularly in the South, shoulder a disproportionate share of the VAT pool while lower-generating zones receive significantly more under the current allocation formula.