Manufacturing Sector Emerge Largest Contributor as VAT Collection Hits N1.78tn YoY – THISDAYLIVE

Arthur Eriye

Data published by the  National Bureau of Statistics (NBS) has revealed that the country generated N1.78 trillion as value-added tax (VAT) in the third quarter (Q3) of 2024, compared to N948.07 billion in Q3 2023

The numbers represent a 14.16 per cent quarter-on-quarter (QoQ) increase compared to the N1.56 trillion collected in the second quarter of 2024. It also signifies an 88 per cent year-on-year (YoY) growth compared to Q3 2023.

The N1.78 trillion revenue was primarily driven by local VAT payments amounting to N922.87 billion, foreign VAT payments totaling N448.85 billion, and import VAT, which contributed N410.62 billion.

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).

According to the data agency’s latest report on the sectoral distribution of VAT for Q3 2024, the NBS said the figure (N1.78 trillion) represents an 88 per cent 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. Local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024,” NBS said.

It added, “On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 250.39 per cent, followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.09 per cent.

“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 bureau said the top three largest shares in Q3 2024 were manufacturing (22.21 per cent), information and communication (20.89 per cent), and mining and quarrying activities (18.90 per cent).

Furthermore, 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 per cent), followed by activities of extraterritorial organisations and bodies (0.01 per cent), and water supply, sewerage, waste management, and remediation activities (0.03 per cent)