The Federal Board of Inland Revenue Service is a Federal Tax authority charged with the responsibility of Assessements and Collection of Federal Taxes like companies Income Tax; Witholding tax on companies; Petroleum profit Tax; Value Added Tax; Education Tax and Capital Gains tax on resident of FCT, Abuja, bodies corporate and Non-resident individuals. The importance of Revenue generation to the Nigeria Economy cannot be over-emphasised. Because of the importance, the strategies to effectively generate the revenue from Value Added Tax requires careful examination. The project addresses the problems in the context of Nigeria and reveals that both internal and external constraints, if properly addressed by the government would lead to much higher VAT collection in Nigeria. The proposition profers some recommendation and also suggest some implementation strategies if adopted would lead to higher yields from VAT collection. It also conclude that the Federal Inland Revenue Service needs the understanding and cooperation of the VATable persons and support of the Federal Government to create an enabling environment for effective VAT collection.