VAT Disbursement Rises to N551.77bn in February

Gross Value Added Tax disbursement to states increased by 30.36 per cent month on month to N551.77 billion in February 2026, up from N423.25 billion recorded in January.

Data compiled from the Office of the Accountant General shows that net VAT distribution also rose by 31.41 per cent to N541.89 billion during the period, reflecting sustained improvements in tax collections and steady economic activity.

The increase was broad based, with all states recording higher allocations in February. Major economic centres maintained their dominance, while lower ranked states also posted gains.

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Lagos State remained the highest recipient by a wide margin. Gross allocation rose to N111.22 billion from N61.00 billion in January, representing an 82.32 per cent increase. After a deduction of N9.89 billion, net allocation stood at N101.34 billion. Lagos was the only state with a VAT deduction during the period.

Oyo State ranked second with N24.04 billion, up from N15.80 billion, reflecting a 52.10 per cent increase. Rivers State followed with N23.57 billion, rising from N16.89 billion, a 39.50 per cent increase.

Kano State recorded N17.37 billion, compared to N16.32 billion in January, representing a 6.43 per cent increase. The Federal Capital Territory entered the top five with N15.76 billion. Bayelsa State posted N15.07 billion, up from N9.37 billion, marking a 60.84 per cent increase.

Mid tier states including Katsina State, Jigawa State, Delta State, and Kaduna State recorded allocations ranging between N12.73 billion and N13.82 billion. Growth rates in this group ranged from 6.14 per cent to 16.08 per cent.

At the lower end, allocations remained below N10 billion but continued to grow. Taraba State received N9.37 billion, up from N8.10 billion, representing a 15.60 per cent increase. Ebonyi State recorded N9.45 billion, rising from N8.32 billion, a 13.61 per cent increase.

Yobe State posted N9.76 billion, compared to N8.21 billion, reflecting an 18.82 per cent increase. Nasarawa State received N9.77 billion, up from N8.92 billion, while Ekiti State recorded N9.83 billion, compared to N8.96 billion.

Other states including Cross River State, Abia State, Gombe State, Kogi State, and Plateau State recorded allocations between N9.97 billion and N10.47 billion, with growth rates ranging from 8.54 per cent to 23.01 per cent.

The latest increase follows a 74 per cent rebound recorded in January, indicating that the earlier surge was not a one off adjustment. The continued rise suggests sustained momentum in VAT collections and distribution to subnational governments.

Analysts note that improved compliance, stable consumption patterns, and gradual economic recovery contributed to the higher disbursement levels.