By John Ikani
Nigeria’s National Bureau of Statistics (NBS) reported a significant increase in Value Added Tax (VAT) collection for the first quarter (Q1) of 2024.
According to the VAT Q1 2024 Report, the total VAT collected reached N1.43 trillion, representing a 19.21% growth compared to N1.20 trillion in Q4 2023.
The breakdown of the collected VAT reveals a diversified revenue stream. Local payments contributed N663.18 billion, while foreign VAT payments and import VAT amounted to N435.73 billion and N332.01 billion respectively.
Looking at specific sectors, the report highlights impressive growth in certain industries. Accommodation and food service activities saw the highest increase at 59.15%, followed by administrative and support activities at 47.79%.
However, some sectors experienced declines. Activities of extraterritorial organizations and bodies had the lowest growth rate at -57.01%, followed by human health and social work activities at -27.73%.
In terms of sectoral contributions to overall VAT collection, manufacturing emerged as the top contributor with a 26.72% share. Information and communication followed closely at 17.42%, while mining and quarrying activities contributed 15.42%.
On the other end of the spectrum, activities related to households and extraterritorial organizations had minimal contributions, at 0.01% and 0.03% respectively. Water supply and waste management activities also registered a low share at 0.05%.
Furthermore, the report reveals a substantial year-on-year increase in VAT collection. Compared to Q1 2023, VAT collections in Q1 2024 jumped by 101.65%. This significant rise indicates a positive trend in Nigeria’s revenue generation.
