VAT revenue increased by 14% to N1.78trn in Q3 2024 – NBS

The National Bureau of Statistics (NBS) has announced that Nigeria generated N1.78 trillion in value-added tax (VAT) revenue during the third quarter (Q3) of 2024, representing a 14.16 percent increase compared to the N1.56 trillion collected in the second quarter (Q2) of the same year.

The report highlights a significant year-on-year growth, with Q3 2024 VAT revenue showing an 88 percent increase from the N948 billion recorded in Q3 2023. VAT, a consumption tax managed by the Federal Inland Revenue Service (FIRS), is distributed among the three tiers of government through the Federation Accounts Allocation Committee (FAAC).

“On the aggregate, Value Added Tax (VAT) for Q3 2024 was reported at N1.78 trillion, showing a growth rate of 14.16% on a quarter-on-quarter basis from N1.56 trillion in Q2 2024,” the NBS stated.

According to the breakdown, local VAT payments accounted for N922.87 billion, foreign VAT payments contributed N448.85 billion, and import VAT totaled N410.62 billion in Q3 2024.

The report also noted variations in growth rates among sectors. “On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 250.39%, followed by the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.09%,” NBS said.

Conversely, some sectors experienced declines. “Water supply, sewerage, waste management, and remediation activities had the least growth rate with –41.92%, followed by activities of extraterritorial organizations and bodies with –36.14%.”

In terms of sectoral contributions, manufacturing led with 22.21 percent, followed by information and communication with 20.89 percent, and mining and quarrying activities at 18.90 percent. On the lower end, activities of households as employers and extraterritorial organizations each contributed 0.01 percent, while water supply, sewerage, waste management, and remediation activities accounted for 0.03 percent.