In a recent report titled “Value Added Tax (VAT) Q1 2024,” the National Bureau of Statistics (NBS) announced a significant increase in Value Added Tax collections for the first quarter of 2024.
VAT revenue rose to N1.43 trillion, marking a 19.21% growth compared to the N1.2 trillion recorded in the fourth quarter of 2023.
The report detailed the composition of VAT payments, with local VAT payments contributing N663.18 billion, foreign VAT payments accounting for N435.73 billion, and import VAT bringing in N332.01 billion.
Sectoral analysis revealed that accommodation and food service activities experienced the highest growth rate on a quarter-on-quarter basis, with a 59.15% increase.
This was followed by administrative and support services, which grew by 47.79%. Conversely, the activities of extraterritorial organisations and bodies saw the steepest decline, with a –57.01% growth rate, followed by human health and social work activities at –27.73%.
In terms of contributions by sector, manufacturing led with a 26.72% share of total VAT, followed by information and communication at 17.42%, and mining and quarrying activities at 15.42%.
The sectors with the smallest shares were households as employers, undifferentiated goods- and services-producing activities of households for own use at 0.01%, extraterritorial organisations and bodies at 0.03%, and water supply, sewerage, waste management, and remediation activities at 0.05%.
On a year-on-year basis, VAT collections in Q1 2024 saw a remarkable increase of 101.65% compared to Q1 2023, highlighting robust growth in tax revenue over the past year.
