This paper examines the effect of value-added tax monopoly by some states on low revenue-generating states. An exploratory/survey approach was adapted. Employment, revenue generation, and economic development were used as proxies to measure the monopolistic effect of value-added tax on low revenue-generating states. Primary source of data collection was employed through a closed-end questionnaire. The population of the study stand at 273 respondents drawn from Borno, Gombe, and Yobe state, with a sample size of 256 using stratified sampling technique. Linear Regression was employed to analyze the data with the help of SPSS version 27. Findings show that monopoly of value-added tax by states will negatively and significantly affect employment, revenue generation, and economic development of other states. The study concluded that value-added tax revenues should be generated for redistribution to states and local governments in Nigeria to argument their internally generated revenue as this will enhance growth and economic development. It was recommended by the study that resources should be redistributed equitable and fairly by the federal government so as to reduce persistent friction in the revenue allocation.