-1738351437162-806942326.jpeg&w=1920&q=75)
- Nigeria’s Value-Added Tax revenue increased to N6.72 trillion in 2024
- The figure represents an 84.62 per cent growth compared to the N3.64 trillion recorded in 2023
- Oil revenue declined but import and non-import VAT and CIT exceeded projections
Nigeria’s Value-Added Tax (VAT) revenue increased to N6.72 trillion in 2024, representing an 84.62 per cent increase year-on-year compared to the N3.64 trillion recorded in 2023.
This was disclosed during the 2025 Federal Inland Revenue Service (FIRS) Management Retreat, held on Thursday, January 30, in Abuja.
According to the data presented by Amina Ado, Coordinating Director, Large Taxpayers Group, VAT collections in 2024 increased across both import and non-import categories.
The data showed that all tax categories grew in 2024 compared to 2023, with non-oil taxes driving the majority of the increase at 97 per cent.
Tax revenue growth across categories
The data showed that non-import VAT increased by 75.09 per cent from N2.93 trillion recorded in 2023 to N5.13 trillion in 2024.
Import VAT saw a 122.38 per cent increase from the N715 billion recorded in 2023 to N1.59 trillion in 2024.
Company Income Tax (CIT) grew by 102.5 per cent, up from the N3.35 trillion recorded in 2023 to N6.78 trillion in 2024.
The Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT increased by 35.2 per cent from N4.26 trillion in 2023 to N5.76 trillion in 2024.
The highest year-on-year percentage growth was recorded in the Education Tax (EDT) category, which surged by 127.8 per cent from N719 billion in 2023 to N1.64 trillion in 2024.
Oil revenue declines despite growth
The oil-related tax revenue fell short of FIRS’ internal projections of N7 trillion.
The PPT/HT/CIT Upstream category generated N5.76 trillion in 2024, representing 82.3 per cent of its target for 2024.
The shortfall was attributed to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.
However, some of the revenue losses in this category were offset through improved debt collection.
Import, non-import VAT and CIT exceed projections
Despite that oil-related revenue underperformed, VAT collections surpassed internal projections.
Import VAT, initially projected at N1.1 trillion, rose by 144.3 per cent to reach a revenue of N1.59 trillion at the end of the year.
Non-import VAT also exceeded its target of N4.25 trillion by 20.7 per cent, reaching N5.13 trillion by the end of 2024.
CIT collections, expected to generate N5.7 trillion, ended the year at N6.78 trillion, representing 118.9 per cent higher than its target.
FIRS has a revenue target of N25 trillion in 2025
The National Assembly Joint Committee on Finance, on January 15, set a revenue target of N25 trillion for the FIRS for the 2025 fiscal year.
Recall also that the FIRS Chairman, during an interactive session between the Federal Government’s revenue-generating agencies and the National Assembly Joint Committee to review the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), told the committee that the FIRS realised N18.5 trillion of the N19.4 trillion revenue target for 2024.
He said N5.7 trillion was realised from Company Income Tax, which is more than the projected N4 trillion target. The FIRS also exceeded its target of N70 billion on education tax and raked in N1.5 trillion as of the end of September 2024.
Nigeria’s Value Added Tax revenue increased to N1.782 trillion
Meanwhile, TheRadar earlier reported that 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.
