Nigeria’s Value Added Tax (VAT) collection increased by 21.34% from N781.35 billion in the second quarter to N948.07 billion in Q3, 2023.
This is according to the third quarter Value Added Tax (VAT) report from the National Bureau of Statistics (NBS).
According to the report, N522.08 billion was collected in local payments, while N204.58 billion was collected in foreign VAT payments and N221.41 billion from import VAT during Q3 2023.
Growth by sectors
On a quarter-on-quarter agriculture, forestry and fishing sectors saw the most substantial growth rates at 91.87%, with activities of extraterritorial organizations and bodies following closely at 80.25%.
On the other hand, real estate experienced the lowest growth rate at –37.68%, trailed by construction at –9.54%.
Sectoral contribution
However, the activities of households as employers and undifferentiated goods- and services-producing activities of households for own use accounted for the smallest share at 0.02%, followed by water supply, sewerage, waste management, and remediation activities at 0.06%, and activities of extraterritorial organizations and bodies at 0.10%.
In terms of sectoral contributions, the three leading shares in Q3 2023 were manufacturing at 26.51%, information and communication at 19.04%, and financial & insurance activities at 12.31%.
Decline in VAT for ICT and manufacturing sector
The manufacturing sector raked in N138.38 billion, followed by N99.42 billion for the Information and Communication sector.
The manufacturing and ICT sectors both saw a drop in VAT returns. For the ICT sector, there was a drop of N9.02 billion in returns for VAT in Q3 when compared to the N108.4 billion for Q2, 2023.
The VAT collected from the manufacturing sector, was a decline of about N13.40 billion in Q3 when compared to the N151.78 billion collected from the sector in the second quarter.
Nevertheless, in a year-on-year comparison, VAT collections in Q3 2023 experienced a notable increase of 51.60% from Q3 2022.
