Gross VAT disbursement to Nigerian states rose by 30.36% month-on-month to N551.77 billion in February 2026. This marks a continued upswing in revenue flows to subnational governments from the N423.25 billion recorded in January 2026.
Net VAT disbursement increased by 31.41% to N541.89 billion during the same period. The figures are based on data compiled by the Nairametrics Research Team from the Office of the Accountant General.
This increase reflects a broad-based rise in VAT distributions across states, with both top-performing and lower-ranked states recording gains. This trend is occurring amidst sustained tax collection momentum and steady economic activity heading into the first quarter of the year.
All states benefited from higher VAT disbursement in February, with leading economic hubs continuing to dominate the allocations.
Lagos State remained the highest recipient by a significant margin. Its gross disbursement rose to N111.22 billion from N61.00 billion in January, an 82.32% increase. After a N9.89 billion deduction, net disbursement stood at N101.34 billion, reinforcing its position as the largest VAT contributor.
Oyo State climbed to second position with N24.04 billion, up from N15.80 billion, reflecting a 52.10% increase. Rivers State followed closely with N23.57 billion, up from N16.89 billion, representing a 39.50% increase.
Kano State recorded N17.37 billion, rising from N16.32 billion, representing a more moderate 6.43% increase. FCT Abuja made a notable climb into the top five with N15.76 billion, marking its first appearance among the highest recipients in recent months. Bayelsa State recorded N15.07 billion, up from N9.37 billion in January, a strong 60.84% gain.
The 30.36% month-on-month increase in gross disbursements, following January’s 74% rebound, suggests that the earlier surge was not a one-off correction but indicates momentum remains strong.
The next group of states, Katsina, Jigawa, Delta, and Kaduna, also recorded gains, with disbursement ranging between N12.73 billion and N13.82 billion. Growth rates in this cluster were more modest, ranging from 6.14% to 16.08%, suggesting that the outsized January surge had already established a higher baseline for these states.
At the lower end, allocations remained smaller but continued to grow. Taraba State recorded N9.37 billion, up from N8.10 billion, representing a 15.60% increase. Ebonyi State followed, with N9.45 billion, rising from N8.32 billion, marking a 13.61% increase. Yobe State posted N9.76 billion, rising from N8.21 billion, marking an 18.82% increase. Nasarawa State recorded N9.77 billion, up from N8.92 billion, reflecting a 9.52% increase. Ekiti State recorded N9.83 billion, up from N8.96 billion, representing a 9.74% increase.
Other states such as Cross River, Abia, Gombe, Kogi, and Plateau recorded allocations ranging from N9.97 billion to N10.47 billion, with growth rates between 8.54% and 23.01%, indicating continued positive momentum across the lower tier.
A recent Nairametrics article revealed that VAT allocations to Nigerian states surged by 74% month-on-month to N423.25 billion in January 2026, rebounding sharply from N242.92 billion in December 2025, with net VAT allocation rising 77.72% to N412.37 billion over the same period.
