The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has projected that states could earn more than N4tn annually from 2026, when new Value Added Tax reforms take effect. Oyedele made this disclosure on Tuesday at the launch of the BudgIT State of States 2025 Report in Abuja, where he delivered the keynote address. The event also marked the 10th anniversary of the initiative. He said, “With VAT reforms kicking in from 2026, states’ share will rise to 55 per cent. That could amount to over N4 tn in 2026. The question is: will this money be spent, or will it be invested?” The fiscal policy expert noted that while recent economic reforms had more than doubled the Federation Account Allocation Committee transfers, from N5.4tn in 2023 to N11.4tn in 2024, many Nigerians were yet to feel any direct relief. According to him, governments now have more money in their coffers, but households continue to struggle with reduced disposable income. “States are receiving more money than ever before.

Daily Trust