Дата публикации: 18-07-2026 00:00:00

Value-added tax, commonly referred to as VAT, is an indirect consumption tax on
goods and services that has significant importance in Nigeria for revenue
collection. On the other hand, ambiguities such as legal jurisdiction, taxable
supplies, input VAT recovery, and enforcement inconsistencies within the Nigeria
legislation have thrown up many controversies in the operation of the tax between
the Federal and State Governments. The aim of this study was to analyze the legal,
administrative, and structure of VAT in Nigeria. Using the doctrinal research
methodology, this study reviewed primary sources such as statutory laws such as
the Value Added Tax (Amendment) Act (VATA) of 2007, as amended by
subsequent Finance Acts, including the Finance Act of 2019, 2020 and 2023.court
decisions and secondary sources including government reports to assess the
efficacy and challenges of Nigeria's VAT system. The findings revealed that
Nigeria’s VAT system faces challenges, including insufficient taxpayer data, low
compliance rates, and corruption in tax administration. Also, ambiguities within
the 1999 Constitution have fueled jurisdictional conflicts. It was concluded that
these challenges limits VAT’s potential to drive economic and social sustainability.
Key recommendations include amending the 1999 Constitution to include VAT in
the Exclusive or Concurrent Legislative List because If VAT is to remain federal,
Item 59 (Exclusive List) should be expanded to clearly define VAT as a federal tax
also if states are to collect VAT, Item 7 (Concurrent List) should be amended to
specify VAT as a state-administered sales tax, improving data collection methods,
and strengthening punishments for tax corruption.

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