Nigeria’s VAT Revenue Soars to ₦1.56tn in Q2 2024, Report Reveals
The Federal Government of Nigeria has announced a significant boost in its revenue from Value Added Tax (VAT) in the second quarter of 2024. According to the National Bureau of Statistics (NBS), the total VAT revenue collected by the government during this period reached ₦1.56 trillion, representing a 9.11 percent increase from the ₦1.43 trillion recorded in the first quarter of 2024.
Broken down, local payments contributed ₦792.58 billion, foreign VAT payments amounted to ₦395.74 billion, and import VAT contributed ₦372.95 billion in Q2 2024. The report also highlights the sectoral contributions, with manufacturing, information and communication, and mining and quarrying being the top three contributors, accounting for 11.78 percent, 9.02 percent, and 8.79 percent of the total VAT revenue, respectively.
On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate at 98.44 percent, followed by agriculture, forestry, and fishing with 70.26 percent, and water supply, sewerage, waste management, and remediation activities with 59.75 percent. Conversely, activities of households as employers, undifferentiated goods, and services-producing activities of households for own use recorded the lowest growth rate with 46.84 percent, followed by real estate activities with 42.59 percent.
The NBS report also reveals that VAT collections in Q2 2024 increased by 99.82 percent from Q2 2023, indicating a substantial growth in the government’s revenue from VAT. While the government’s revenue has experienced fluctuations in recent quarters, this significant increase suggests a promising trend for Nigeria’s economy.
As the government continues to implement fiscal policies to stimulate economic growth, the increase in VAT revenue provides a welcome boost to its coffers. With a more stable economic outlook, the government may be able to allocate more resources to critical sectors such as infrastructure development, education, and healthcare, ultimately benefiting the Nigerian people.
The National Bureau of Statistics will continue to monitor VAT revenue collections and provide quarterly reports to the public, enabling stakeholders to track trends and make informed decisions.
