Nigeria Raises State Share of VAT to 55 Percent

ABUJA – Nigeria’s government will launch a major tax reform on 1 January 2026. The reform raises the state share of VAT (Value‑Added Tax) from 50 percent to 55 percent.

The change was announced by Presidential Committee Chair Taiwo Oyedele, who called for stronger accountability at the state level. Under the new rate, transfers to states are projected to exceed NGN 4 trillion (about Rp45.76 trillion) in the first year.

The additional revenue is intended to fund strategic areas such as education and health and to improve national fiscal governance. The measure is part of four tax bills signed by President Bola Tinubu in June 2025, effective from 1 January 2026.