By: Daure David
The recently released Value Added Tax (VAT) data by the National Bureau of Statistics (NBS) has stirred significant conversation, challenging long-standing regional stereotypes about Nigeria’s economic landscape. Contrary to the prevalent notion that the southern states are the primary drivers of the nation’s tax revenue, the 2024 report reveals a striking shift in the contribution patterns, with Northern Nigeria playing an increasingly pivotal role.
The data shows that while Lagos remains the largest contributor with a staggering N2.75 trillion, states in the North, often perceived as economically disadvantaged, have demonstrated impressive growth in VAT contributions. This challenges the narrative that the North is a net drain on the nation’s resources, instead highlighting its emerging economic strength.
In a remarkable turnaround, states like Kano, Kaduna, and Borno recorded substantial contributions. Kano, for example, contributed N77.76 billion and received N117.19 billion, reflecting a 150.7% return on its VAT contributions. Similarly, Kaduna, which contributed N30.30 billion, saw a return of N88.50 billion—a staggering 292.1% of what it contributed. Borno, despite its challenges, reported a contribution of N35.29 billion, with a return of N76.15 billion, reflecting a 215.8% increase. These figures not only debunk misconceptions about Northern Nigeria’s economic potential but also serve as evidence of the region’s capacity to be a major player in the nation’s economic development.
The shift in the VAT contribution landscape is a timely reminder of the North’s long history as a key contributor to Nigeria’s economy. Long before the discovery of oil in the South, Northern Nigeria was the backbone of the country’s economy, contributing to national revenues through agriculture and other sectors. This historical context further underscores the significance of the current data, urging Nigerians to reconsider their views on the economic contributions of various regions.
Governor Bala Mohammed of Bauchi State, a vocal critic of the Tax Reform Bill, has called attention to the fact that many Northern states are ahead of some Southern and Western states in terms of VAT contributions. Bauchi, for instance, recorded N19.59 billion in VAT contributions and received N77.47 billion, marking a 395.3% increase—a testament to the state’s growing economic relevance.
For many, the data signals not just a change in economic dynamics, but also a call for unity and collaboration across regions. The stark contrasts in VAT contributions—ranging from states like Lagos, which contributed N2.75 trillion, to states in the North, which are now seeing higher returns on their contributions—serve as an important reminder that all regions have a role to play in Nigeria’s growth.
As a Northern Nigerian political and public affairs analyst noted, the figures should not be seen as vindication but rather as a challenge to do more. “We have what it takes to be productive and contribute immensely to the development of this country,” he said, emphasizing the need for the region to harness its full potential and rise above past stereotypes.
The report also indirectly supports Governor Bala Mohammed’s stance on the Tax Reform Bill, highlighting the importance of equitable distribution of resources and addressing the economic imbalance that often favors certain regions over others. By demonstrating that Northern states can contribute significantly to the VAT pool, the data strengthens the case for a more inclusive tax and fiscal policy.
However, this new reality calls for a more nuanced and inclusive understanding of Nigeria’s economic capabilities. The VAT data reveals that Northern Nigeria, often criticized for its perceived lack of productivity, is indeed a key driver of the nation’s economic engine. As Nigeria moves forward, it is imperative that all regions come together, setting aside old biases and stereotypes, to build a united and prosperous nation.
The figures in the VAT report should not only spark pride in the North but also encourage the entire country to invest in economic development across all regions. Nigeria’s future prosperity lies in its unity and collective effort—a lesson that is more relevant today than ever before.
