The Nigerian government generated an impressive N1.78 trillion in Value Added Tax (VAT) revenue during the third quarter of 2024, marking a significant increase, according to a report by the National Bureau of Statistics (NBS).
This figure reflects a 14.16% quarter-on-quarter growth from the N1.56 trillion collected in Q2 2024. Additionally, it represents a remarkable 88% year-on-year increase compared to the third quarter of 2023.
The N1.78 trillion revenue was largely driven by local VAT collections, which accounted for N922.87 billion. Foreign VAT payments contributed N448.85 billion, while import VAT added N410.62 billion to the total.
The Human Health and Social Work sector experienced the most significant growth, recording a 250.39% increase quarter-on-quarter. Following closely were activities of households as employers and undifferentiated household goods and services production, which grew by 102.09%.
On the downside, water supply, sewerage, waste management, and remediation activities saw the sharpest decline, falling by 41.92%. Activities of extraterritorial organisations and bodies also recorded a significant drop of 36.14%.
The manufacturing sector emerged as the highest contributor to VAT revenue, accounting for 22.21% of the total. Information and communication followed with a 20.89% share, while mining and quarrying contributed 18.90%.
At the lower end of the spectrum, activities of households as employers, undifferentiated household activities, and extraterritorial organisations and bodies each contributed just 0.01% to the VAT revenue. Water supply, sewerage, waste management, and remediation activities made up a modest 0.03%.
The report underscores the dynamic shifts in Nigeria’s economic landscape, with certain sectors showing exceptional resilience and others facing challenges.
