Emmanuel OchayiNigeria has not only managed to maintain its Value-Added Tax (VAT) revenue but has also seen significant growth in the first half of 2023.
According to the latest data released by the National Bureau of Statistics (NBS), the country generated a whopping N1.49 trillion in aggregate revenue from VAT during this period, signifying a remarkable economic resurgence.
Breaking down the numbers, the NBS revealed that the second quarter of 2023 alone accounted for N781.35 billion in VAT revenue, marking an impressive 10.11% quarter-on-quarter growth compared to the N709.59 billion reported in the first quarter of the same year.
What’s particularly interesting is the diverse range of sectors contributing to this resurgence. Extra-territorial organizations and bodies led the charge with an astonishing 212.06% growth rate, closely followed by the real estate sector at 123.09%.
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However, on the flip side, activities of households as employers and undifferentiated goods- and services-producing activities of households for personal use showed a decline, with growth rates of -57.06% and -32.86%, respectively.
Delving into sectoral contributions, manufacturing emerged as the leader, accounting for a substantial 29.64% of the total VAT revenue. It was followed by the information and communication sector at 21.19% and financial and insurance activities at 11.18%.
On the contrary, activities of households as employers and undifferentiated goods- and services-producing activities of households for personal use contributed the least, each with just 0.01% of the share.
Perhaps the most encouraging aspect of this VAT revenue surge is the year-on-year growth. VAT collections in the second quarter of 2023 soared by a remarkable 30.19% compared to the same quarter in 2022, showcasing a robust and sustained economic recovery for Nigeria.
This data not only underscores the country’s ability to weather economic challenges but also highlights the diverse sectors playing pivotal roles in its resurgence. Nigeria’s VAT revenue surge serves as a testament to its resilience and adaptability in the ever-changing global economic landscape.
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