Nigeria’s Value Added Tax (VAT) collection reached a record N1.95 trillion in the fourth quarter (Q4) of 2024.
This marks a 9.23% increase from the N1.78 trillion recorded in Q3 2024, reflecting improved tax compliance, economic activity, and possibly the effects of inflation on prices.
This is according to the latest report titled “Sectorial Distribution of Value Added Tax Q4 2024” from the National Bureau of Statistics (NBS).
“On aggregate, Value Added Tax (VAT) for Q4 2024 was reported at N1.95 trillion, showing a growth rate of 9.23% on a quarter-on-quarter basis from N1.78 trillion in Q3 2024. Domestic payments were N917.40 billion, Non-import foreign VAT Payments were N554.68 billion, while import VAT contributed N474.75 billion in Q4 2024,” NBS noted.
On a quarter-on-quarter basis, NBS stated, activities of extraterritorial organizations and bodies recorded the highest growth rate with 180.05%, followed by agriculture, forestry, and fishing with 70.83%, and Human health and social work activities with 46.13%.
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use contracted by 28.97%, followed by information and communication with 23.00%, according to the NBS.
Manufacturing leads sectoral contributions of VAT
In terms of sectorial contributions, the NBS report reveals that the top three largest shares in Q4 2024 were manufacturing with 25.89%, information and communication with 16.18%, and mining and quarrying with 15.52%.
Also, the report stated that the least contributing activity during the quarter was activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01%; followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management with 0.04% contribution each.
“However, on a year-on-year basis, VAT collections in Q4 2024 increased by 62.19% compared to the corresponding quarter (Q4 2023),” NBS noted.
What You Should Know
In June 2025, President Bola Tinubu signed into law four tax reform bills impacting key areas of Nigeria’s fiscal and revenue framework.
- The signing ceremony took place at the Presidential Villa. The four bills include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
- They were passed by the National Assembly after months of consultation with various interest groups and stakeholders.
- The tax bills generated significant public debate and skepticism across different groups and regions in the country.
In response, extensive consultations were held to ensure the incorporation of diverse opinions into the legislative process.
