At the parley between the Federal Government and Progressive Governors Forum, PGF, in Abuja, Finance Minister, Kemi Adeosun, said that more than half of Nigeria’s value added tax, VAT, comes from Lagos State alone.
Adeosun said 87 percent of Nigeria’s VAT was derived from four states and the Federal Capital Territory, FCT. She noted also that only 13 percent of Nigeria’s VAT came 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 was collected in Lagos State; FCT, 20%; Rivers, 6%; Kano, 5%; and Kaduna, 1%.
