NBS: VAT revenue increased by 14% to N1.78trn in Q3 2024

The National Bureau of Statistics (NBS) says the country generated N1.78 trillion as value-added tax (VAT) in the third quarter (Q3) of 2024.

The figure represents an increase of 14.16 percent when compared to the N1.56 trillion recorded in the second quarter (Q2) of 2024.

VAT is a consumption tax that is administered by the Federal Inland Revenue Service (FIRS).

The revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).

In its latest report on the sectoral distribution of VAT for Q3 2024, the NBS said the figure (N1.78 trillion) represents an 88 percent increase compared to the N948 billion generated in Q3 2023.

“On the aggregate, Value Added Tax (VAT) for Q3 2024 was reported at N1.78 trillion, showing a growth rate of 14.16% on a quarter-on-quarter basis from N1.56 trillion in Q2 2024,” NBS said.

“Local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024.

“On a quarter-on-quarter basis, Human heath and social work activities recorded the highest growth rate with 250.39%, followed by the Activities of households as employers, undiffer-entiated goods- and services-producing activities of households for own use with 102.09%.

“On the other hand, Water supply, sewerage, waste management and remediation activities had the least growth rate with –41.92%, followed by Activities of extraterritorial organizations and bodies with –36.14%.”

In terms of sectoral contributions, the statistics firm said the top three largest shares in Q3 2024 were manufacturing (22.21 percent), information and communication (20.89 percent), and mining and quarrying activities (18.90 percent).

The NBS added that activities of households as employers, undifferentiated goods-and services-producing activities of households for own use recorded the least share (0.01 percent), followed by activities of extraterritorial organisations and bodies (0.01 percent), and water supply, sewerage, waste management, and remediation activities (0.03 percent).