Manufacturing, ICT, Banks, Highest Contributors As Nigeria Earned N1.49trn From VAT In Six Months

Nigeria earned the sum of N1.49trn from Value Added Tax within the first six months of this year, a report released by the National Bureau of Statistics has revealed.

A breakdown of the N1.49trn showed that the sum of N781.35bn was generated in the second quarter, showing a growth rate of 10.11 per cent on a quarter-on-quarter basis from the sum of N709.59bn earned in Q1 2023.

According to the report, local payments of VAT accounted for N512.03bn, foreign VAT payments N142.63bn, while import VAT contributed N126.69bn during the period under review.

On a quarter-on-quarter basis, the report said the activities of extraterritorial organizations and bodies recorded the highest growth rate with 212.06 per cent, followed by real estate activities with 123.09 per cent.

On the other hand, it added that activities of households as employers, and undifferentiated goods and service-producing activities of households for own use had the lowest growth rate with –57.06 per cent. This is followed by agriculture, forestry, and fishing with –32.86 per cent.

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.

This is 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, the NBS report stated that on a year-on-year basis, VAT collections in Q2 2023 increased by 30.19 per cent from Q2 2023.