My people, make we yarn beta gist wey dey waka for our Federation. The 36 states go collect N5.07 trillion for 2026 as their share of VAT, because government don shift gears on the taxation matter.
The Federal Government wan dey chop small small, as dem don reduce VAT share wey dem dey collect from 15% to 10%. E sure say states go shine as their own share dey increase from 50% to 55%. Local Governments no go shake, as their own remain 35%. Na big big money we dey talk o!
For 2026, Federal Government go waka with N922.53 billion, down from N1.04 trillion wey dey 2025. E no mean sey dem no wan collect money again, but the way dem dey share am don change, make everybody chop better.
See ehn, this new tax formula go make states dey enjoy more dough! If you check am well, Federal Government dey lose about N461.27 billion, but na good news for states as dem go get extra cash to enjoy their lives. With these changes, by 2026, states go dey collect N5.07 trillion at all!
Local Governments go also shine collecting N3.23 trillion, up from N2.43 trillion. Na real flow we dey see based on VAT increase. As we dey spend, tax dey comot like water from pipe.
But wait, make we clear one thing: all this money no be beans o! Federal Government dey manage other types of revenue too, but e no carry the same weight. Oil money dey drop, and na wetin dey affect dem small. From N60.26 trillion wey dem dey chop for 2025, to N41.06 trillion in 2026, e no be small wahala.
Local and state governments dey flex their muscle now as dem fit now collect more VAT cash thanks to digital spending wey dey increase every day. Na wetin banks dey carry come current times, steady data dey fly everywhere!
Some experts don already talk say if Federal Government no increase VAT rate we go face kasala o. The thing wey NESG CEO talk don carry weight. If dem no do something fast, we fit lose revenue like investor wey no sabi play market again.
IMF don talk say no increase in VAT fit reduce government revenue sharply. Dem don dey reason say we need balance as we dey increase VAT rate for long-term gain. If states fit manage the money well, who know? E fit help Naija grow!
The new VAT arrangement go bright future for states, but the question be say, will dem invest this money to make life better? Or dem just go chop am anyhow? As we dey enter 2026, dem don make promise say states fit take in N4 trillion from this tax wahala.
We go dey watch as this money dey land, we go also monitor how dem go use am. But as e be now, VAT don turn from small change to major cash wey dey cause real movement for entire Nigeria.
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