Nigeria’s Value Added Tax (VAT) revenue for Q3 2024 rose to N1.78 trillion showing a growth rate of 14.16 per cent on a quarter-on-quarter basis from N1. 56 trillion recorded in Q2 2024.
The VAT data report recently published by the National Bureau of Statistics (NBS) disclosed that, on a year-on-year basis, VAT grew by 88 per cent from N948.07 billion recorded in Q3 2023 to N1.78 trillion in Q3 2024.
Value-added tax (VAT) which is a consumption tax on goods and services levied at each stage of the supply chain where value is added has come under debate over the new sharing formula for the revenue as proposed in the new tax reform bills currently before the National Assembly.
A breakdown of accumulated VAT revenue showed that local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT payments contributed N410.62 billion in Q3 2024.
On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate at 250.39 per cent, followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use at 102.09 per cent.
Similarly, Water supply, sewerage, waste management and remediation activities had the lowest growth rate at 41.92 per cent, followed by Activities of extraterritorial organisations and bodies with –36.14 per cent.
According to the NBS, with regards to sectoral contributions, the top three largest shares in Q3 2024 were Manufacturing with 22.21 per cent, Information and Communication with 20.89 percent and Mining & Quarrying activities with 18.90 per cent.
It noted that 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 Activities of extraterritorial organisations and bodies with 0.01 per cent and Water supply, sewerage, waste management, and remediation activities with 0.03 per cent.
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