Nigeria generates N781.34bn from VAT in Q2’23

..up by 10.11% from Q1

By Onome Amuge.

The Nigerian government raked in N781.35 billion as the aggregate revenue from value-added tax (VAT) in the second quarter of 2023, according to the latest data from the National Bureau of Statistics (NBS).

This represents 10.11 per cent quarter-on-quarter growth from N709.59 billion posted in the first quarter of 2023.

A breakdown of the VAT collections for Q2 2023 as contained in the NBS report titled  “Sectoral Distribution of Value Added Tax Q2 2023”, showed that local payments accounted for a huge chunk of payments,amounting to N512.03 billion,while foreign VAT payments were N142.63 billion.

Import VAT also contributed significantly to the VAT collections as it contributed N126.69 billion during the reviewed period.

The data which was provided by the Federal Inland Revenue Service (FIRS) before the NBS’ verification and validation, revealed that  the activities of extraterritorial organizations and bodies recorded the highest growth rate on a quarter-on-quarter basis, with 212.06 per cent, followed by real estate activities with 123.09 per cent.

On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate, falling 57.06 per cent. This was followed by 32.86 percent decline in the agriculture, forestry, and fishing sectors.

In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing with 29.64 per cent; information and communication with 21.19 per cent; and financial and insurance activities with 11.18 per cent.

However, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 per cent, followed by water supply, sewerage, waste management, and remediation activities with 0.05 per cent; and activities of extraterritorial organizations and bodies with 0.05 per cent.

In addition, on a year-on-year basis, VAT collections in Q2 2023 increased by 30.19 per cent from Q2 2022.