Clarity is the foundation of progress
Why your tax money seems to disappear
Common misconception
Many people believe all taxes go to the Federal Government and that local and state governments receive nothing from their contributions.
How it actually works
Taxes flow differently. Personal income tax (PAYE) goes to your State Government, not Federal. VAT is collected federally and shared among Federal, State, and Local Governments through the Federation Account. Company income tax and customs duties go to the Federal Government. Your LGA receives allocations from the Federation Account and internally generated revenue.
Why it affects everyday life
When you pay PAYE tax and your state roads are bad, your Governor—not the President—is accountable for how that money was used. When VAT increases and your LGA markets are neglected, your Chairman shares responsibility. Knowing where your taxes go tells you who to hold responsible.
Key Takeaway
PAYE tax stays in your state. Your Governor manages it, not the President.
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