Nigeria earns N2.33trn from VAT, CIT In Q4, Says NBS
National Bureau of Statistics (NBS) on Thursday revealed that Nigeria’s economy earned N2.33 trillion from Value Added Tax (VAT) and Company Income Tax (CIT) in the fourth quarter of 2023
The report by NBS disclosed that VAT collections for Q4 2023 was N1.20 trillion, marking a significant 26.61% increase on a quarter-on-quarter basis from N948.07 billion in Q3 2023.
This increase was driven by a combination of local payments, which amounted to N630.00 billion, foreign VAT payments at N326.27 billion, and import VAT contributions of N244.04 billion.
Sector-wise, agriculture, mining, and quarrying led the growth rates with an impressive 63.75 per cent increase, closely followed by other services activities at 61.98per cent.
However, not all sectors fared as well, with activities of extraterritorial organisations and bodies seeing a decrease in growth rate by 19.44per cent, and the financial and insurance sectors experiencing an 8.46 per cent decline.
Manufacturing, information and communication, and mining and quarrying were the top contributors to the VAT collections, showcasing the diverse sources of tax revenue for the nation.
The year-on-year comparison further illustrates the substantial growth in VAT collections, with a 72.12 per cent increase from Q4 2022.
On VAT, the report by NBS stated that “On the aggregate, Value Added Tax (VAT) for Q4 2023 was reported at N1.20 trillion, showing a growth rate of 26.61 per cent on a quarter-on-quarter basis from N948.07 billion in Q3 2023. Local payments recorded were N630.00 billion, Foreign VAT Payments were N326.27 billion, while import VAT contributed N244.04 billion in Q4 2023.
“On a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75 per cent, followed by the other services activities with 61.98 per cent.
“On the other hand, activities of extraterritorial organisations and bodies activities had the lowest growth rate with –19.44 per cent, followed by financial and insurance with –8.46 per cent.
“In terms of sectoral contributions, the top three largest shares in Q4 2023 were manufacturing with 13.24 per cent, information and communication with 10.02% and mining and quarrying with 7.91 per cent.
“Nevertheless, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 per cent, followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management and remediation activities with 0.03 per cent and real estate activities 0.07 per cent, agriculture, forestry and fishing with 0.10 per cent. However, on a year-on-year basis, VAT collections in Q4 2023 increased by 72.12 per cent from Q4 2022.”
The Company Income Tax (CIT) was N1.13 trillion, indicating a 35.40 per cent decrease from the previous quarter’s N1.75 trillion.
This downturn was balanced by contributions from local payments (N533.93 billion) and foreign CIT payments (N596.10 billion).
Notably, the electricity, gas, steam, and air conditioning supply sector recorded the highest growth rate at 79.65 per cent, with construction also showing significant growth.
Manufacturing maintained its position as a major contributor to CIT, alongside financial and insurance activities and mining and quarrying, underscoring the critical role of these sectors in Nigeria’s tax revenue framework.
The CIT report read: “On the aggregate, Company Income Tax (CIT) for Q4 2023 was reported at N1.13 trillion, indicating a growth rate of –35.40 per cent on a quarter-on-quarter basis from N1.75 trillion in Q3 2023. Local payments received were N533.93 billion, while Foreign CIT Payment contributed N596.10 billion in Q4 2023.
“On a quarter-on-quarter basis electricity, gas, steam and air conditioning supply recorded the highest growth rate with 79.65 per cent, followed by construction with 57.86 per cent. On the other hand, activities of Information and communication –69.44, and Public administration and defence, compulsory social security –23.75 had the lowest growth rate.
“In terms of sectoral contributions, the top three largest shares in Q4 2024 were Manufacturing 12.84 per cent, Financial and insurance activities 6.25 per cent, and Mining and quarrying 5.90 per cent. Nevertheless, Activities of households as employers, undifferentiated goods- and services producing activities of households for own use 0.00 per cent, Water supply, sewerage, waste management and remediation activities 0.02 per cent, and Activities of extraterritorial organizations and bodies 0.07 per cent.”
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