Nigeria’s VAT Revenue Rises to Over N1.9trn in Q4 2024, 10 Sectors Highest Contributors

• The NBS has announced that the federal government recorded an increased VAT payment from local and foreign companies
• The new figures released on its latest VAT report also showed the sectors with the highest contribution
• Manufacturing contributed the largest share of VAT in the quarter at 25.89%, followed by information and communication

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The National Bureau of Statistics (NBS) said Nigeria’s Value Added Tax (VAT) collections rose to N1.95 trillion in the fourth quarter of 2024.

This is a 9.23% increase from N1.78 trillion in the previous quarter, driven by higher receipts from domestic and foreign transactions.

Domestic VAT payments accounted for N917.40 billion, non-import foreign VAT payments for N554.68 billion, while import VAT contributed N474.75 billion.

Activities of extraterritorial organisations and bodies posted the fastest quarter-on-quarter growth at 180.05%, followed by agriculture, forestry and fishing at 70.83%, and human health and social work activities at 46.13%.

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By contrast, VAT from activities of households as employers fell 28.97%, while the information and communication sector declined 23.00%.

Manufacturing contributed the largest share of VAT in the quarter at 25.89%, followed by information and communication with 16.18%, and mining and quarrying at 15.52%.

The lowest contributions came from activities of households as employers at 0.01%, and both extraterritorial organizations and water supply, sewerage and waste management at 0.04% each.

On a year-on-year basis, VAT collections surged 62.19% from the N1.20 trillion recorded in the same quarter of 2023.

Full details later

Source: Legit.ng