Nigeria’s Value Added Tax (VAT) increased by 1.75% on quarter-on-quarter basis in the first quarter (Q1) this year to N709.59 billion from the N697.38 billion collections from the revenue source in Q4 2022.
The National Bureau of Statistics (NBS), which released these figures on Tuesday in its ‘Value Added Tax (Q1 2023)’ report hoisted on its website, however, disclosed that on a year-on-year basis, the VAT collections in Q1 2023 increased by 20.56% when compared to the Q1 2022.
The report indicated that in the quarter under review, the leading contributors to the VAT revenue by sector were led by the manufacturing sector with 29.65%, followed by Information and Communication at 19.29%, and mining & quarrying at 12.24%.
An analysis of the VAT collections report showed that local payments recorded were N436.10 billion, foreign VAT payments totalled N151.13 billion, while import VAT contributed N122.37 billion in Q1 2023.
Also, the Bureau reported that on a quarter-on-quarter basis, the activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the highest growth rate with 349.86%, followed by construction with 95.64%.
The report reflected that the activities of extraterritorial organizations and bodies had the lowest growth rate with –53.54%, followed by real estate activities with –47.01%, as manufacturing contributed the most.
The NBS clarified: “In terms of sectoral contributions, the top three largest shares in Q1 2023 were manufacturing with 29.65%; information and communication with 19.29%; and mining & quarrying with 12.24%.
“Conversely, activities of extraterritorial organizations and bodies recorded the least share with 0.02%, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 0.03%; and water supply, sewerage, waste management, and remediation activities with 0.04%”, it added
The statistics agency reported that in 2022 Nigeria generated a sum of N2.51 trillion as VAT, representing a 21.2% increase compared to N2.07 trillion the country generated in the previous year.
In 2022, the Bureau disclosed that N1.48 trillion was as local non-import VAT, N510.8 billion generated as foreign non-import VAT, and Nigeria Customs Service (NCS) remitted N521.5 billion VAT.
