Nigeria earns N2.33 trillion from VAT, CIT in Q4 2023
The Nigeria’s economy received N2.88 tillion revenue through Value Added Tax (VAT) and Company Income Tax (CIT) in the fourth quarter of 2023
This is according to the latest figures released by the National Bureau of Statistics (NBS).
The VAT collections for Q4 2023 was N1.20 trillion, marking a significant 26.61% increase on a quarter-on-quarter basis from N948.07 billion in Q3 2023.
This increase was driven by a combination of local payments, which amounted to N630.00 billion, foreign VAT payments at N326.27 billion, and import VAT contributions of N244.04 billion.
On sector by sector consideration, agriculture, mining, and quarrying led the growth rates with an impressive 63.75% increase, closely followed by other services activities at 61.98%.
This is not the same for all sector as activities of extraterritorial organisations and bodies seeing a decrease in growth rate by 19.44%, and the financial and insurance sectors experiencing an 8.46% decline.
Manufacturing, information and communication, and mining and quarrying were the top contributors to the VAT collections, showcasing the diverse sources of tax revenue for the nation.
The year-on-year comparison further illustrates the substantial growth in VAT collections, with a 72.12% increase from Q4 2022.
“On the aggregate, Value Added Tax (VAT) for Q4 2023 was N1.20 trillion, showing a growth rate of 26.61% on a quarter-on-quarter basis from N948.07 billion in Q3 2023. Local payments recorded were N630.00 billion, Foreign VAT Payments were N326.27 billion, while import VAT contributed N244.04 billion in Q4 2023.
“On a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75%, followed by the other services activities with 61.98%. On the other hand, activities of extraterritorial organisations and bodies activities had the lowest growth rate with –19.44%, followed by financial and insurance with –8.46%.
“In terms of sectoral contributions, the top three largest shares in Q4 2023 were manufacturing with 13.24%, information and communication with 10.02% and mining and quarrying with 7.91%. Nevertheless, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management and remediation activities with 0.03% and real estate activities 0.07%, agriculture, forestry and fishing with 0.10%. However, on a year-on-year basis, VAT collections in Q4 2023 increased by 72.12% from Q4 2022.”
