The National Bureau of Statistics (NBS) has reported that Nigeria generated N1.78 trillion as value-added tax (VAT) in the third quarter (Q3) of 2024. This represents a 14.16 percent increase compared to the N1.56 trillion collected in the second quarter (Q2) of 2024.
VAT, a consumption tax administered by the Federal Inland Revenue Service (FIRS), is distributed among the three tiers of government through the Federation Accounts Allocation Committee (FAAC). According to the NBS report on the sectoral distribution of VAT for Q3 2024, the revenue represents an 88 percent increase from the N948 billion recorded in Q3 2023.
The report highlighted that activities of households as employers, as well as undifferentiated goods- and services-producing activities of households for their own use, accounted for the least share of VAT revenue at 0.01 percent. This was followed by extraterritorial organisations and bodies (0.01 percent) and water supply, sewerage, waste management, and remediation activities (0.03 percent).
Also Read: Nigerians Pay 63% More in Road Taxes in 2023, Says NBS Report
The growth in VAT revenue reflects ongoing efforts by the FIRS to boost collections and enhance compliance, contributing significantly to the country’s revenue base.
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