National Bureau of Statistics reports 14% Increase in Value Added Tax Revenue
In the third quarter (Q3) of 2024, Nigeria generated N1.78 trillion in Value Added Tax (VAT), marking a 14.16% increase compared to the N1.56 trillion recorded in the second quarter (Q2) of 2024. This growth also represents an 88% rise from the N948 billion generated in the same quarter of 2023.
The VAT system, administered by the Federal Inland Revenue Service (FIRS), is a consumption tax, and the revenue generated from it is distributed among the three tiers of government via the Federation Accounts Allocation Committee (FAAC).
The NBS report highlights that local VAT payments amounted to N922.87 billion, foreign VAT payments contributed N448.85 billion, and import VAT generated N410.62 billion in Q3 2024.
Notably, the sectoral growth rate varied. The human health and social work activities sector saw the highest growth, with a 250.39% increase, followed by the activities of households as employers, undifferentiated goods- and services-producing activities for own use, which grew by 102.09%. Conversely, water supply, sewerage, waste management, and remediation activities recorded a decrease of 41.92%, while activities of extraterritorial organizations and bodies shrank by 36.14%.
The largest contributors to VAT in Q3 2024 were manufacturing (22.21%), information and communication (20.89%), and mining and quarrying activities (18.90%). On the other hand, sectors like activities of households as employers, extraterritorial organizations and bodies, and water supply had the smallest shares, with contributions as low as 0.01% for some categories.
