By Charles Ebi
Gross VAT disbursement to Nigerian states rose by 30.36% month-on-month to N551.77 billion in February 2026, marking a continued upswing in revenue flows to subnational governments from the N423.25 billion recorded in January 2026.
The figures are based on data compiled by the Nairametrics Research Team from the Office of the Accountant General, which also shows that net VAT disbursement increased by 31.41% to N541.89 billion during the period.
The increase reflects a broad-based rise in VAT distributions across states, with both top-performing and lower-ranked states recording gains, amid 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.
Only Lagos state had VAT deduction during the month’s disbursement. For other states, their net VATs are practically the same as their gross because there were no deductions.
Lagos State remained the highest recipient by a significant margin, with gross disbursement rising 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 by far.
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, while 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 suggests momentum remains strong following January’s rebound.
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.
Lagos State was the highest recipient in January, with gross disbursement rising to N61.00 billion from N36.10 billion, a 68.98% increase, while net disbursement stood at N50.12 billion after a N10.89 billion deduction, underlining its dominance as Nigeria’s largest VAT contributor.
The top five states in January, Rivers (N16.89 billion), Kano (N16.32 billion), Oyo (N15.80 billion), and Kaduna (N11.99 billion), posted growth rates ranging from 50% to over 75%, reflecting broad-based strength across Nigeria’s major economic centers.
The mid-tier group comprising Katsina, Jigawa, Delta, Niger, and Akwa Ibom each recorded growth between 74% and 96%, with allocations ranging from N10.82 billion to N11.90 billion, signaling strong VAT momentum beyond the traditional top states.
Even the lowest-ranked states recorded significant gains in January, with Taraba (N8.10 billion), Yobe (N8.21 billion), Ebonyi (N8.32 billion), Gombe (N8.38 billion), and Cross River (N8.73 billion) all posting growth rates between 57% and 79%, confirming that the January surge was nationwide rather than concentrated in a few hubs.