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Minister says Lagos alone contributes 55% of Nigeria's VAT

August 2, 2017 9:57 AM

32 states in the country contribute only 13% value added tax (VAT).

Minister of Finance, Kemi Adeosun

The Minister of Finance, Kemi Adeosun, has disclosed that Lagos alone contributes 55% of the countrys value added tax (VAT).

She made this disclosure while speaking at a parley between the Federal Government and the Progressive Governors' Forum (PGF) of the All Progressives Congress (APC), on Tuesday, August 1, 2017.

While speaking on the topic "The Funding Nigeria Needs", the minister, who complained about the nation's poor tax-to-GDP ratio, the lowest in the world, said 87% of the country's VAT comes from only four states and the Federal Capital Territory (FCT).

She said, "There is no poor country that has a high tax compliance rate, and no rich country that has a low one.

"55% of Nigeria's VAT is collected in Lagos State, 20% in FCT, 6% in Rivers, 5% in Kano, 1% in Kaduna. I'm hoping that one day, Finance Commissioners will stop needing to come to Abuja monthly to share FAAC, because IGR (internally generated revenue) will be sufficient."

According to her, the remaining 32 states in the country contribute only 13% VAT.