Lagos State is set to be the biggest loser of the new value-added tax (VAT) revenue-sharing formula for Nigeria’s sub-nationals, proposed by a presidential tax advisory body.
The revelation comes from an analysis of some provisions in the new reform by Agora Policy, a civic organisation focused on proffering solutions to national issues.
The Abuja-based think tank, using a simulation based on actual VAT data for October 2024, indicated in a post on X (formerly Twitter) that Lagos, Nigeria’s main commercial hub, would have received a share of N32.2 billion based on the planned allocation template, contrary to the N39.7 billion it got for the month.
That is equivalent to a 23.3 per cent decline.
“Despite the overall increase, 14 states will be worse off while 22 states will be better off,” said Agora Policy, which uses an evidence-led and solution-driven model in analysing policy research.
The fourteen states, excluding Lagos, include Bayelsa, Rivers, Ebonyi,…