Nigeria’s VAT collection rises 21.34% to N948.07bn in Q3 – Report

Bisola David
Bisola David
Only four Nigeria states attract foreign investment in Q4 - Report

Value Added Tax revenue in Nigeria climbed by 21.34% in Q3 2023, from N781.35 billion in the second quarter to N948.07 billion.

This is based on the National Bureau of Statistics’ third-quarter Value Added Tax report.

In Q3 2023, N522.08 billion was collected in local payments, N204.58 billion in foreign VAT payments, and N221.41 billion from import VAT, according to the report.

Agriculture, forestry, and fishing sectors had the highest quarterly growth rates, at 91.87%, followed closely by extraterritorial organizations and bodies’ operations at 80.25%.

Contrarily, the lowest growth rate was recorded by real estate (-37.68%), followed by construction at -9.54%.

The least amount, however, came from household employment and undifferentiated goods- and service-producing activities for personal use (0.02%), which was followed by activities related to water supply, sewage, waste management, and remediation (0.06%), and extraterritorial organizations and bodies (0.10%).

In Q3 2023, manufacturing accounted for 26.51% of sectoral contributions, followed by information and communication at 19.04% and financial & insurance activities at 12.31%.

The information and communication sector brought in N99.42 billion, while the manufacturing sector brought in N138.38 billion.

VAT returns decreased in both the manufacturing and ICT sectors. Compared to N108.4 billion for Q2, 2023, the ICT sector’s VAT returns decreased by N9.02 billion in Q3.

Compared to the N151.78 billion collected from the manufacturing sector in the second quarter, the amount of VAT collected in the third quarter decreased by approximately N13.40 billion.

However, when comparing Q3 2023 to Q3 2022 year over year, VAT collections showed a significant rise of 51.60%.

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