Nigeria’s Value Added Tax (VAT) allocation for October 2025 reveals a significant pattern of wealth redistribution across the six geopolitical zones, with the Southern zones contributing the majority of the revenue while the Northern zones received substantially more than their contribution.
According to data released by the Federation Account Allocation Committee (FAAC), the total VAT pooled from the six zones amounted to ₦508.02 billion in October 2025. Of this amount, the zones collectively received ₦335.14 billion as their share of the allocation for the month.
The figures underscore the economic concentration in the Southern part of the country, particularly the South-west, which contributed the lion’s share of the VAT revenue.
VAT Contribution and Allocation by Geopolitical Zone
The table below details the financial performance of each zone, showing the amount generated versus the amount received from the VAT pool. The “Net Position” illustrates the surplus or deficit for each zone after allocation.
| Zone | Contributed (₦bn) | Received (₦bn) | Received as % of Contribution | Net Position (₦bn) |
| South-west | 333.01 | 91.88 | 27.59% | -241.13 |
| South-south | 80.48 | 53.79 | 66.84% | -26.69 |
| North-west | 41.82 | 64.07 | 153.20% | +22.25 |
| North-central | 20.51 | 44.32 | 216.09% | +23.81 |
| North-east | 18.94 | 44.17 | 233.21% | +25.23 |
| South-east | 13.26 | 36.91 | 278.36% | +23.65 |
Key Observations from the October 2025 VAT Allocation
1. Southern Zone Contributions Dominate
The two Southern zones alone contributed a combined ₦413.49 billion, representing approximately 81.4% of the total VAT generated across the entire country for the month.
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The South-west zone was the single largest economic driver, contributing ₦333.01 billion—more than the combined contribution of all five other zones.
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The South-south zone was the second-largest contributor at ₦80.48 billion.
2. Pattern of Redistribution
The data clearly illustrates the fiscal equalization mechanism in Nigeria’s revenue-sharing formula, where contributions are pooled and then redistributed:
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Net Contributors (Deficit): The South-west and South-south zones were the only two regions that contributed more than they received, with a combined deficit of over ₦267 billion.
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Net Beneficiaries (Surplus): All four Northern zones, along with the South-east, received substantially more than they generated. The North-east zone, despite being the second-lowest contributor at ₦18.94 billion, received 233.21% of its contribution.
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The South-east zone received the highest percentage relative to its contribution, taking 278.36% of its generated VAT, resulting in a net surplus of ₦23.65 billion.
This distribution pattern reflects Nigeria’s federal system, where internally generated revenue is centrally managed and shared based on predefined criteria (which often includes factors like population and equality) rather than solely on the principle of derivation.
