Nigeria’s Value Added Tax (VAT) revenue for the third quarter of 2024 reached an all-time N1.78 trillion. This marks a 14.16 per cent growth compared to the N1.56 trillion collected in the previous quarter.
This growth reflects the government’s efforts to expand its revenue sources beyond oil.
A detailed breakdown of the Q3 2024 VAT figures shows that local payments contributed N922.87 billion, foreign VAT payments accounted for N448.85 billion, while import VAT added N410.62 billion to the total.
The human health and social work activities sector recorded the highest growth, surging by an astonishing 250.39 per cent compared to the previous quarter. This was followed by activities of households as employers and undifferentiated goods and services for household use, which grew by 102.09 per cent.
However, some sectors experienced significant declines. Water supply, sewerage, waste management, and remediation activities saw the largest drop, contracting by -41.92 per cent. Activities of extraterritorial organisations and bodies also fell sharply by -36.14 per cent.
The manufacturing sector emerged as the biggest contributor, accounting for 22.21 per cent of the total VAT revenue. Information and communication came next with 20.89 per cent, followed by mining and quarrying activities at 18.90 per cent.
On the other hand, activities of households as employers (0.01 per cent), extraterritorial organisations (0.01 per cent), and water supply, sewerage, waste management, and remediation activities (0.03 per cent) contributed the least.
Year-on-year, VAT revenue increased by 88.00 per cent compared to the same period in 2023.
This robust performance highlights improvements in tax compliance and the government’s drive to enhance its fiscal strength.
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