VAT: Nigerian Govt generated N1.56tn in second quarter of 2024

The Nigerian Government’s revenue collection from Value-Added Tax rose to N1.56 trillion in the second quarter (Q2) of 2024.

This is according to the National Bureau of Statistics, NBS, VAT Q2 2024 data released on Monday.

The figure represents a 99.82 percent increase compared to the N781.35 billion collected in the corresponding quarter of last year.

Also on a quarter-on-quarter basis, the Q2 VAT rose by 9.11 percent from N1.43 trillion in Q1 2024.

The data showed that local VAT payments recorded were N792.58 billion, foreign VAT payments stood at N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44 percent, followed by agriculture, forestry and fishing with 70.26 percent, and water supply, sewerage, waste management and remediation activities with 59.75 percent.

On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84 percent, followed by real estate activities with –42.59 percent.

In terms of sectoral contributions, the top three largest shares in Q2 2024 were manufacturing with 11.78 percent; information and communication with 9.02 percent; and mining and quarrying with 8.79 percent.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 percent, followed by Activities of extraterritorial organizations and bodies with 0.01 percent; and Water supply, sewerage, waste management and remediation activities with and Real Estate Services 0.04 percent each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82 percent from Q2 2023,” NBS stated.

DAILY POST reports the country generated 2.47 trillion from Company Income Tax in the same period.

This comes amid the controversy surrounding the government’s plan to increase VAT from 7.5 percent to 10 percent.

However, Minister of Finance, Wale Edun on Monday clarified that Nigeria’s VAT remained at 7.5 percent.