VAT Revenue Increases by 14% to N1.78 Trillion in Q3 2024 – NBS

The National Bureau of Statistics (NBS) reports that the federal government generated N1.78 trillion in Value-Added Tax (VAT) during the third quarter (Q3) of 2024.

This figure represents a 14.16 percent increase compared to the N1.56 trillion recorded in the second quarter (Q2) of 2024.

According to DAILY POST, VAT is a consumption tax managed by the Federal Inland Revenue Service (FIRS), with the revenue typically distributed to the three tiers of government through the Federation Accounts Allocation Committee (FAAC).

The NBS, in its latest report on the sectoral distribution of VAT for Q3 2024, stated that the N1.78 trillion generated represents an 88 percent increase compared to the N948 billion collected in Q3 2023.

“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.

“Local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while Import VAT contributed N410.62 billion in Q3 2024.

“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%.

“On the other hand, 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%,” NBS said.

On sectoral contributions, the NBS reported that the top three largest shares in Q3 2024 were from manufacturing (22.21 percent), information and communication (20.89 percent), and mining and quarrying activities (18.90 percent).

The NBS also noted that the sectors with the smallest shares were activities of households as employers, undifferentiated goods-and-services-producing activities of households for their own use (0.01 percent), followed by activities of extraterritorial organizations and bodies (0.01 percent), and water supply, sewerage, waste management, and remediation activities (0.03 percent).