Nigeria's Value Added Tax (VAT) inches up to ₦1.108 trillion in 2018

Nigeria’s Value Added Tax (VAT) increased to ₦1.108 trillion in 2018 from ₦972.3 billion recorded in 2017. This is contained in the National Bureau of Statistics’ report on the Sectoral Distribution of Value Added Tax (VAT).

According to the Bureau’s report, the sum of ₦298.01 billion was generated as VAT in Q4 2018, as against ₦273.50 billion generated in Q3 and ₦266.73 in Q2 2018.

Basic Highlights

  • Quarter on Quarter 2018, VAT grew by 96% in Q4 2018.
  • Year-on-Year, there was 17.28% increase in VAT generated.
  • Out of the total amount generated in Q4 2018, N138.42bn was generated as Non- Import VAT locally while N47.89bn was generated as Non-Import VAT for foreign. The remaining ₦71 billion was generated as NCS-Import VAT.
  • In Q4 2018, Other Manufacturing generated the highest amount of VAT with ₦82bn generated and closely followed by Professional Services and Commercial and Trading both generating ₦24.12 billion and ₦16.02bn respectively.
  • Mining generated the least ₦75 million and closely followed by Pharmaceutical, Soaps & Toiletries and Chemical, Paints and Allied Industries with, ₦209.33 million and ₦258.39  million generated respectively.

VAT generation: High Performing Sectors in 2018

  • Automobiles generated ₦5 million in Q4 2018. Representing 35.87% quarter on quarter Growth. In 2018 full year, total VAT generated amounted to ₦1.56 billion.
  • Breweries, Bottling and Beverages VAT recorded 0.61% growth in 2018 with ₦35.9 billion. Quarter on Quarter, VAT increased by 24.98%.
  • VAT from Commercial and Trading increased by 27.39% year on year, while a 0.14% increase was recorded quarter on quarter. A total of 63.062 billion was generated in 2018.
  • Conglomerate witnessed a decline of 3.28% year on year with ₦126 billion generated. Quarter on quarter, a 58.27% VAT increase was recorded.
  • Local Government councils generated a 140.33% high increase in VAT year on year, with VAT generated amount to ₦1.54 billion. Quarter and Quarter, VAT from Local Government Council grew by 45%.
  • Federal Ministries and Parastatals failed to record growth in VAT year on year, with a 4.88% Growth of 1.19% VAT was recorded quarter on quarter.  Total of ₦19.4 billion was recorded in 2018.
  • Gas sector recorded 4.97% VAT year on year, with VAT amounting to ₦74 billion in 2018. Quarter on quarter, 16.02% VAT increase was recorded.
  • Hotel and Catering generated 26.71% growth in VAT year on year, while quarter 3 on quarter 4 VAT grew at 8.12%.
  • Minning recorded 34.75% growth in VAT year on year with ₦5 billion
  • Other VAT for the period under review grew by 32.27 in 2018 year on year.
  • Also, Offshore Operations witnessed a 12.80% increase in VAT with year on year total amounting to ₦56 billion.
  • VAT in Oil marketing increased by 20.19% year on year. In 2018 full year, a total of ₦73 billion was recorded
  • Other Manufacturing recorded a 2.76% increase in VAT collected year on year, with total VAT collected amounting to ₦9 billion in 2018.
  • Pioneering recorded 35.36% increase in VAT collected year on year 2018.
  • Properties and Investments recorded 35.46% increase in VAT collected year on year 2018.
  • VAT from State Ministries & Parastatals grew by 5.05% in 2018 year on year, with total revenue collected amounted to ₦95 billion.
  • Also, VAT from Stevedoring, Clearing and Forwarding increased by 38.46% in 2018
  • Textile and Garment industry recorded a 33.27% increase in VAT
  • Sub-Total (Non-Import VAT) Local collected increased by 1.36% year on year
  • Non-Import (Foreign) VAT increased by 10.24% year on year
  • NCS-Import VAT also increased by 50.6% year on year

VAT generation low Performing Sectors in 2018

  • Agricultural and Plantations recorded a decline in Q4 VAT from ₦2 million in Q3 down to ₦591.7 million. This represents an 18.07% decrease quarter on quarter. Year on year, it grew by 31.72%. Total VAT generated in 2018 was ₦2.47 billion.
  • Banks and Financial Institution recorded 12.74% growth in VAT quarter on quarter. Total VAT for 2018 dropped by 10.88% with the sum of ₦5 billion.
  • Building and Construction VAT dropped by 24.66% year on year 2018 with a total VAT amounting to ₦10.003 billion. However, quarter on quarter, VAT generated from building and Construction increased by 8.25%.
  • ₦1.4 billion VAT was generated from Chemical, Plants and Allied Industries, this is a drop by 37% year on year. Quarter 3 on quarter 4, VAT increased by 34.26%
  • There was a 17.02% year on year decline in VAT from the oil producing sector, total VAT collected in 2018 stood at ₦45 billion.
  • A 4.34% decline in VAT collected from Petro-Chemical sector with total revenue generated year on year 2018 was ₦66 billion.
  • VAT from Pharmaceutical, Soaps and Toiletries sector equally dropped by 6.43% year on year 2018.
  • Pioneering services recorded 1.42% decline in VAT collected year on year 2018.
  • There was a 35.19% drop in VAT collected from Publishing, Printing, and Paper Packaging
  • Transport and Haulage Services recorded a 49.94% decline in VAT collected for 2018 year on year.



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