Business

Nigeria’s VAT Collections Increase By 72.12% YoY Record N1.20trn In Q4 2023

Nigeria recorded a total of N1.20 trillion as Value Added Tax (VAT) contributions to the economy in the fourth quarter (Q4) of 2023.

This is according to the latest data released by the National Bureau of Statistics (NBS) which revealed a significant improvement in the country’s revenue collection in the VAT window.

The data showed that on a year-on-year basis, VAT collection increased by 72 per cent in Q4 2023 from Q4 2022.

It further revealed that on a quarter-on-quarter basis, VAT collections increased by 26.61 per cent in Q4 2023 from the third quarter of 2023 which was N948.07 billion.

It said that “local payments recorded were N630.00 billion, foreign VAT payments were N326.27 billion, while import VAT contributed N244.04 billion in Q4 2023.”

The report indicated that on a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75 per cent, followed by the other services activities which had 61.98 per cent.

“On the other hand, activities of extraterritorial organisations and bodies activities had the lowest growth rate with –19.44%, followed by financial and insurance with –8.46%.”

In terms of sectoral contributions, manufacturing was the highest with N158.9 billion reflecting 13.24 per cent. This is followed by information and communication which had N120.2 billion (10.02 per cent), mining & quarrying, N94.9 billion (7.91 per cent).

Additionally, the NBS reported that Nigeria’s aggregate Company Income Tax (CIT) for Q4 2023 is N1.13 trillion. The figure is contained in the NBS Company Income Tax (CIT) Q4 2023 Report released last week.

Victor Ezeja

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.