Nigeria’s Value Added Tax (VAT) collections in the second quarter of this year surged to N781.35 billion, representing a 10.11% growth when compared to the previous quarter’s N709.59 billion collection from the revenue source, the National Bureau of Statistics (NBS) has reported.
The report highlighted the quarter-on-quarter, sectoral and year-on-year VAT collections.
According to the statistics agency, on quarter-on-quarter basis local payments accounted for the lion’s share, amounting to N512.03 billion; foreign VAT accruals contributed N142.63 billion while import VAT accounted for N126.69 billion collection during the quarter under review.
An analyzes of the growth rates across sectors quarter-on-quarter reflected that Extraterritorial organizations and bodies recorded 212.06% growth rate followed by Real estate activities with a growth rate of 123.09%.
However, the Bureau clarified that the growth rate of activities of households as employers and undifferentiated goods- and services-producing activities of households for own use was the lowest at -57.06% while Agriculture, forestry, and fishing growth rate also dipped by -32.86%.
On sectoral contributions to the VAT accruals, it reported that Manufacturing sector led the VAT collection chart in Q2 2023, accounting for 29.64% share of the collections while Information and Communication sector raked in 21.19%, followed closely by Financial and insurance activities which accounted for 11.18% of the VAT accruals.
As a result, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use ranked lowest on the sectoral contributions’ table, contributing just 0.01% to the VAT collections basket.
Similarly, the statistics agency’s report further indicated that Water supply, sewage, waste management, and remediation activities, along with activities of extraterritorial organizations and bodies accounted for a modest 0.05% share of the VAT collections.
It disclosed that on year-on-year comparative performance, the Q2 2023 VAT collections showed that it grew by 30.19% increase over the collections in the corresponding quarter of last year
