Renowned political analyst and public commentator, Sunday Wale Adeniran, has expressed concern over the disparity in Value Added Tax (VAT) generation among Nigerian states, while commending Ekiti State for outperforming expectations despite its smaller size and population. Using Ekiti as a benchmark, Adeniran highlighted inefficiencies in several states and called for greater accountability among state leaders.
According to Adeniran, the 2024 VAT statistics reveal significant gaps in the performance of states across Nigeria. The Southwest region, in particular, presents intriguing contrasts.
Southwest VAT Performance
Lagos State unsurprisingly leads the pack with a staggering VAT contribution of N2.75 trillion, leveraging its status as Nigeria’s economic nerve center. Oyo State follows at N272.4 billion, while Ekiti State earned praise as it surprisingly ranks third at N29.58 billion, outperforming larger and more populous states like Ogun (N26.16 billion), Osun (N14.79 billion), and Ondo (N13.80 billion).
“Ekiti has shown that size and population are not the only determinants of economic success,” Adeniran remarked, lauding the state’s economic managers for their ability to drive growth with limited resources.
He contrasted Ekiti’s performance with that of Ogun State, which boasts a high concentration of manufacturing companies, particularly in industrial hubs like Agbara and Sango Ota. “Given its proximity to Lagos and its industrial base, Ogun’s VAT contribution pales in comparison to what is expected,” Adeniran stated.
Similarly, he highlighted the combined VAT of Osun and Ondo States, which amounts to N28.59 billion, slightly less than Ekiti’s contribution. With Osun and Ondo collectively having almost four times the population and five times the land mass of Ekiti, their lower revenue generation raises questions about their economic productivity.
Regional Comparisons
Adeniran extended his analysis to other geopolitical zones, revealing surprising insights:
- Northwest: Only Kano (N59 billion) and Kaduna (N35 billion) surpassed Ekiti in VAT revenue, despite the zone’s massive population and expansive land mass.
- Southeast: Except for Anambra, which contributed more than Ekiti, all other Southeastern states lagged behind, with Imo State generating the least VAT at N4 billion.
- North Central: Niger and Kwara outperformed Ekiti, but Nasarawa, Benue, Kogi, and Plateau fell short despite their larger population and land area.
Borno’s Resilience
Adeniran also commended Borno State, which, despite its ongoing security challenges, generated more VAT than most Nigerian states. “Borno’s resilience is remarkable, as it surpassed states like Imo, Kogi, and Osun despite facing a decade of insurgency,” he noted.
Call for Accountability
While Adeniran praised Ekiti’s leadership for their proactive approach, he called for introspection among state leaders, urging them to ensure that future VAT figures align with their states’ economic potential. “Leaders in states lagging behind must reassess their strategies. The economic strengths of each region should reflect in their revenue performance,” Adeniran emphasized.
He concluded by urging citizens to hold their leaders accountable for the apparent revenue gaps. “Without proactive measures to harness resources, enhance productivity, and create an enabling environment for businesses, these states risk stagnation,” Adeniran warned.
Adeniran’s analysis has sparked conversations nationwide, with many Nigerians echoing his call for greater transparency, while applauding Ekiti State’s impressive performance as an example for others to emulate.
