In the second quarter of 2023, Nigeria’s Value Added Tax (VAT) collections continued their upward trajectory, reaching a total of N781.35 billion according to the latest data by the National Bureau of Statistics (NBS).
This represents a remarkable 10.11% growth when compared to the previous quarter, which recorded N709.59 billion in VAT collections.
This report delves into the specifics of this growth, highlighting key sectors and trends within the VAT landscape.
Quarter-on-Quarter Performance
Breaking down the VAT collections for Q2 2023, the data revealed intriguing insights. Local payments accounted for the lion’s share, amounting to N512.03 billion, while Foreign VAT Payments contributed N142.63 billion. Import VAT also played a significant role, contributing N126.69 billion during the same period.
Sectoral Growth
Analyzing the quarter-on-quarter growth rates across sectors, extraterritorial organizations and bodies emerged as the frontrunners with an astonishing growth rate of 212.06%.
Real estate activities followed closely behind with a robust growth rate of 123.09%.
However, it was a different story for activities of households as employers and undifferentiated goods- and services-producing activities of households for own use, which experienced the lowest growth rate, recording -57.06%. Agriculture, forestry, and fishing also faced challenges, with a growth rate of -32.86%.
Sectoral Contributions
When it comes to sectoral contributions to VAT collections in Q2 2023, manufacturing took the lead, commanding a significant 29.64% share.
The information and communication sector secured the second position with a share of 21.19%, followed closely by financial and insurance activities at 11.18%.
In stark contrast, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use occupied the bottom of the list, contributing a mere 0.01%.
Water supply, sewage, waste management, and remediation activities, along with activities of extraterritorial organizations and bodies, both accounted for a modest 0.05% share.
Year-on-Year Growth
Comparing Q2 2023 to the same quarter in the previous year, VAT collections exhibited substantial growth, registering a remarkable 30.19% increase from Q2 2022.
