Business and Economy

Value Added Tax in Nigeria grew to N1.43 trillion in Q1 of 24

According to the report by the National Bureau of Statistics (NBS) on value added tax in Nigeria (VAT), Nigeria generated N1.43 trillion in revenue from VAT in Q1 2024. This represents a 19.21% quarter-on-quarter growth from N1.20 trillion in Q4 2023. Year-on-year, value added tax in Nigeria doubled from N709.6 billion in Q1 2023, indicating significant tax revenue growth and a rebound in economic activities.

The growth also reflects an expansion in value added tax in Nigeria and an increase in the average prices of goods and services. The breakdown of VAT collections for the quarter shows N663.18 billion from local payments, N435.73 billion from foreign value added tax in Nigeria payments, and N332.01 billion from import VAT.

In terms of sector-wise contribution on a Q-o-Q basis, accommodation and food service activities had the highest growth rate at 59.15%, followed by administrative and support activities at 47.79%. Conversely, extraterritorial organizations and bodies’ activities had the lowest growth rate at -57.01%, with human health and social work activities following at -27.73%.

The top three sectors in terms of sectoral contributions were manufacturing (26.72%), information and communication (17.42%), and mining and quarrying (15.42%). The growth in VAT is positive, and the government should focus on enhancing digitization efforts to reduce value added tax in Nigeria leakages and boost tax revenue.

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