ABUJA — The Federal Inland Revenue Service (FIRS) has revealed that 85 per cent of Value Added Tax (VAT) revenue is allocated to Nigeria’s 36 state governments, while the Federal Government retains only 15 per cent.
This disclosure was made by Loveth Ononuga, Director of the FIRS Taxpayer Service Department, during a strategic tax communication session held in Abuja on Friday.
Ononuga emphasized the need for Nigerians to hold state governors accountable for how VAT funds are used, noting that a vast majority of the funds collected are returned to the states.
She reiterated the importance of tax payment, highlighting that the current administration is channeling tax revenue into critical infrastructure, especially road construction across the country.
Ononuga also addressed the issue of multiple taxation and illegal levies, stating that the federal government is working to harmonise tax collections. She said that once the four proposed tax bills are passed into law, they will help tackle the menace of overlapping and unofficial tax demands.
Also speaking at the event, Abdullahi Ismaila, Director of FIRS Communications and Liaison Department, lamented the poor tax compliance culture among Nigerians. He stressed the need for public awareness and education, noting that many citizens are unaware of their responsibilities under the law.
Ismaila praised the Federal Government for pushing the modernisation of tax laws, arguing that outdated legislation has hindered effective revenue generation.
In his presentation titled “Effective Communication Strategies for Tax Awareness,” he urged the use of simple, relatable language in tax education efforts to ensure better public understanding and engagement.
The event was designed to equip media professionals with a clearer understanding of technical tax reporting, which is key to promoting transparency and fostering a culture of compliance.
Experts at the session called for improved data systems, alignment with international best practices, and innovative communication tools to build trust and increase taxpayer participation.
