Nigeria’s new tax regime is already changing how VAT revenue is shared.

According to an analysis of FAAC data, state governments received ₦2.37 trillion in VAT allocations during the first half of 2026. That’s 23.48% more than they received during the same period in 2025. 

Why?

Under the new tax laws that took effect on January 1, 2026:

• The Federal Government’s share of distributable VAT dropped from 15% to 10%
• States’ share increased from 50% to 55%
• Local Governments continued to receive 35% 

For businesses, this isn’t just another government statistic.

Higher allocations could give states more resources to invest in infrastructure, digital services and business support. But it also means businesses should expect stronger attention on tax administration, compliance and record keeping.

As tax systems become more structured, organised businesses will always have an advantage over businesses trying to gather documents at the last minute.

This is where staying tax ready matters.

Keeping your invoices, receipts and income records organised throughout the year makes filing simpler and helps you respond confidently if your records are ever requested.

Don’t wait until filing season to organise your records.

Start building your digital tax history with LessaTax and stay ready all year.


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