Nigeria grows VAT revenue 23% to N697bn in Q4 2022
March 8, 2023165 views0 comments
By Cynthia Ezekwe
Nigeria generated N697.38 billion as value-added tax (VAT) aggregate revenue in the fourth quarter (Q4) of 2022 as VAT collections for the period under review increased by 23.71 per cent compared to the corresponding period of 2021.
The National Bureau of Statistics (NBS), in its recent VAT quarterly report, said the figure also represented a 11.51 per cent quarter-on-quarter increase, or N71.99 billion higher compared to the N625.39 billion recorded in the third quarter (Q3) of 2022.
The report disclosed that local payments recorded N408.12 billion, while foreign VAT payments contributed N159.83 billion. Also, N129.43 billion came from import VAT in Q4 2022.
According to NBS, arts, entertainment, and recreation activities recorded the highest growth rate at 43.82 per cent in Q4 2022; followed by human health and social work activities which recorded 35.82 per cent.
On the contrary, agriculture, forestry and fishing had the lowest growth rate with 30.12 per cent, followed by activities of extraterritorial organisations and bodies with 19.81 per cent.
“In terms of sectoral contributions, the top three largest shares in Q4 2022 were manufacturing with 32.17 percent, information and communication with 18.05 percent, and public administration and defence, compulsory social security with 9.87 percent,’’ the report disclosed.
VAT is a consumption tax that is administered by the Federal Inland Revenue Service (FIRS). Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).