Fresh data from the Federation Account Allocation Committee (FAAC) for October 2025 reveals a striking disparity in Value Added Tax (VAT) contributions versus allocations among states in the North-East, with Bauchi State receiving over five times what it generated.
According to analysis of the October FAAC, Bauchi State contributed N1.46 billion to the national VAT pool but received a gross allocation of N8.22 billion.
This represents a 563.01% return on contribution, making it the highest beneficiary in terms of percentage gain among the states reviewed.
Following closely behind Bauchi, Yobe State contributed N1.47 billion and received N6.53 billion, representing a 444.22% return.
Borno State also saw significant gains, receiving N7.93 billion against a contribution of N2.02 billion, which amounts to 392.57% of its input.
Similarly, Gombe State contributed N2.38 billion and received N6.68 billion, marking a 280.67% return.
The data further highlights that Adamawa State contributed N3.76 billion and received N7.45 billion, a 198.14% return, while Zamfara State contributed N5.04 billion and received N7.69 billion, representing 152.58%.
In a sharp contrast to its neighbors, Taraba State was the only state on the list to receive less than it contributed to the pool. The state generated the highest VAT revenue among the group at N7.85 billion but received an allocation of N7.36 billion. This places its recovery rate at 93.76%, effectively marking a deficit in terms of direct VAT returns for the month.
This latest data is likely to fuel ongoing national conversations regarding fiscal federalism and the formula used for the distribution of consumption taxes in Nigeria.
