The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has projected that Nigerian states could earn over ₦4 trillion annually starting from 2026, when new Value Added Tax (VAT) reforms take effect.
Speaking at the launch of the BudgIT State of States 2025 Report in Abuja, Oyedele said the reforms would raise states’ VAT share to 55 percent, offering an unprecedented revenue boost.
Despite the increase in FAAC allocations, Oyedele highlighted that many Nigerians have yet to experience real relief, as rising revenues contrast with reduced household income.
He urged governors to invest additional revenues in education, healthcare, and infrastructure, noting that 21 states still depend on federal allocations for over 70% of their income.
The 2025 BudgIT rankings placed Anambra at the top of the fiscal performance chart, followed by Lagos, Kwara, Abia, and Edo, while Cross River dropped from fifth to 29th position.
Oyedele emphasized that the reforms offer states a chance to build fiscal resilience and ensure sustainable economic growth.
