Kemi Adeosun, minister for finance, says
more than half of Nigeria’s value added tax
(VAT) comes from Lagos State alone.
Speaking at the parley between the federal
government and progressive governors
forum (PGF) in Abuja on Tuesday, Adeosun
said the 87 percent of Nigeria’s VAT is
derived from four states and the Federal
Capital Territory (FCT).
In other words, only 13 percent of Nigeria’s
VAT comes from 32 other states in the
federation. According to her no country in
the world with high tax compliance rate is
poor, and no rich country has a low tax
compliance rate.
“There is no poor country that has a high
tax compliance rate, and no rich country
that has a low one,” Adeosun said.
Quoting current VAT collection data across
Nigeria, the minister said “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.”
The minister had earlier complained about
the country’s abysmal tax-to-GDP ratio,
which she said was at six percent, further
stating it to be one of the lowest in the
world.
Speaking on the topic “The Funding Nigeria
Needs,” the minister says the states must do
more to generate revenue from with and
not solely depend on the federal
government for federal allocation.
