The Federal Government of Nigeria collected a total of ₦1.78 trillion in Value Added Tax (VAT) during the third quarter of 2024, according to the latest report by the National Bureau of Statistics (NBS).
The Q3 2024 VAT figure represents a 14.16% increase compared to the ₦1.56 trillion recorded in Q2 2024. On a year-on-year basis, it marks an 88% surge from Q3 2023, highlighting significant revenue growth.
The ₦1.78 trillion VAT revenue was generated from three major sources: Local VAT payments accounted for ₦922.87 billion, Foreign VAT payments contributed ₦448.85 billion, while Import VAT yielded ₦410.62 billion.
Sectoral Performance
The Human Health and Social Work sector posted the highest quarter-on-quarter growth rate, soaring by 250.39%. This was followed by “Activities of Households as Employers” and “Undifferentiated Goods and Services-Producing Activities for Household Use,” which rose by 102.09%.
On the flip side, certain sectors experienced sharp declines. The Water Supply, Sewerage, Waste Management, and Remediation Activities sector recorded the steepest drop of 41.92%, while Activities of Extraterritorial Organizations and Bodies saw a decline of 36.14%.
Sectoral Contributions to VAT Revenue
Manufacturing emerged as the highest contributor to VAT revenue, accounting for 22.21% of the total pool. The Information and Communication sector followed closely with 20.89%, while Mining and Quarrying contributed 18.90%.
At the lower end, Activities of Households as Employers and Undifferentiated Household Activities each accounted for just 0.01% of VAT revenue.
Similarly, Activities of Extraterritorial Organizations and Bodies also contributed 0.01%, while Water Supply, Sewerage, Waste Management, and Remediation Activities made up 0.03%.
The increase in VAT collection reflects Nigeria’s efforts to enhance its non-oil revenue base amid fluctuating oil prices.
The government’s drive for tax reforms and better enforcement of compliance is seen as a crucial step toward achieving fiscal sustainability.
