Nigeria’s Value Added Tax revenue increased to N1.782 trillion in Q3 2024

• Nigeria’s Value Added Tax revenue increased to N1.782 trillion
• Local payments accounted for the highest sources of VAT revenue of N922.87 billion
• Human health and social work activities saw the highest growth at 250.39 per cent

Nigeria’s revenue from Value-Added Tax (VAT) increased to N1.782 trillion in the third quarter (Q3) of 2024.

According to the latest report from the National Bureau of Statistics (NBS), the figure represents a 14.16 per cent increase quarter-on-quarter compared to the N1.56 trillion generated in the second quarter (Q2) of 2024.

The report shows that local payments accounted for the largest portion of the total VAT revenue at N922.87 billion when analysed by sources.

On the other hand, foreign VAT payments contributed N448.85 billion, while import VAT stood at N410.62 billion.

The NBS said, “Value Added Tax (VAT) for Q3 2024 was reported at N 1,782,345,123,638.40, showing a growth rate of 14.16 per cent 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.” 

Sectorial analysis of VAT growth rate

An analysis of the VAT growth rate in Q3 2024 shows that the human health and social work activities category recorded the highest growth rate of 250.39 per cent.

The sector is followed by the activities of households as employers, and undifferentiated goods-and services-producing activities of households for own use, which grew by 102.09 per cent due to the increased demand for services and goods.

On the other hand, the water supply, sewerage, waste management, and remediation activities sector recorded a -41.92 per cent decline, followed by activities of extraterritorial organisations and bodies, which fell by -36.14 per cent.

The NBS stated, “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 per cent, followed by Activities of extraterritorial organisations and bodies with –36.14 per cent.”

By sectoral contributions to the VAT revenue in Q3 2024, manufacturing had 22.21 per cent; Information and Communication with 20.89 per cent; and mining and quarrying activities with 18.90 per cent.

VAT rate hasn’t been increased, remains 7.5%, Finance Minister Edun clarifies

Meanwhile, TheRadar earlier reported that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the rate for Value-Added Tax (VAT) has not been increased but remains 7.5 per cent as contained in the relevant tax laws and chargeable on goods and services.

In a statement on Monday, September 9, Edun debunked reports that the VAT rate has been upwardly adjusted to 10 per cent from 7.5 per cent.