VAT generated N1.78trn revenue into federation account in Q3 2024

Nigeria’s Value Added Tax (VAT) revenue for Q3 2024 hits N1,782,345,123,638.40 in the third quarter of 2024. This is according to the latest report from the National Bureau of Statistics (NBS). This figure represents a significant 14.16% quarter-on-quarter growth compared to the N1.56 trillion generated in Q2 2024. “Value Added Tax (VAT) for Q3 2024 was reported at N 1,782,345,123,638.40, showing a growth rate of 14.16% on a quarter-on-quarter basis from N1.56 trillion in Q2 2024. Local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024,” the agency says.
Breaking down the sources of VAT, local payments accounted for N922.87 billion, making up the largest portion of the total revenue. Foreign VAT payments contributed N448.85 billion, while import VAT added another N410.62 billion to the total. These figures highlight the robust contribution of both domestic and international transactions to Nigeria’s tax revenue base. In terms of sectoral performance, the Human health and social work activities category recorded the highest growth rate at a staggering 250.39%. This was followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, which saw a growth rate of 102.09%. These sectors benefited from increased demand for services and goods, reflecting economic recovery trends and heightened consumer spending in specific areas.
Conversely, some sectors experienced significant contractions. The Water supply, sewerage, waste management, and remediation activities sector recorded the steepest decline at -41.92%, followed by Activities of extraterritorial organizations and bodies with a decline of -36.14%. These declines may indicate sector-specific challenges such as regulatory constraints or reduced demand. This quarter’s VAT revenue growth demonstrates the increasing importance of VAT as a cornerstone of Nigeria’s non-oil revenue stream. As the government continues to implement policies aimed at diversifying the economy and improving tax compliance, VAT collection has shown steady improvements over recent quarters.
“On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 250.39%, followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.09%. On the other hand, Water supply, sewerage, waste management and remediation activities had the least growth rate with –41.92%, followed by Activities of extraterritorial organizations and bodies with –36.14%,” the agency noted.
In terms of sectoral contributions, the top three largest shares in Q3 2024 were Manufacturing with 22.21%; Information and Communication with 20.89%; and Mining & Quarrying activities with 18.90%.