According to the National Bureau of Statistics (NBS), in the third quarter (Q3) of 2024, the federal government collected N1.78 trillion in Value-Added Tax (VAT).
When compared to the N1.56 trillion reported in the second quarter (Q2) of 2024, the statistic indicates a 14.16 percent growth.
According to the study, VAT is a consumption tax that is managed by the Federal Inland Revenue Service (FIRS). The Federation Accounts Allocation Committee (FAAC) typically distributes the tax’s proceeds among the three levels of government.
The amount (N1.78 trillion) is an 88 percent increase over the N948 billion earned in Q3 2023, according to the NBS’s most recent data on the sectoral allocation of VAT for Q3 2024.
“On the aggregate, Value-Added Tax (VAT) for Q3 2024 was reported at N1.78 trillion, 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.
“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%,” NBS said.
Manufacturing (22.21 percent), information and communication (20.89 percent), and mining and quarrying operations (18.90 percent) accounted for the top three sectoral contributions in Q3 2024, according to the bureau.
According to the NBS, the activities of households that were employed and those that produced undifferentiated goods and services for their own use accounted for the smallest percentage (0.01 percent). These were followed by the activities of extraterritorial organizations and bodies (0.01 percent) and the activities related to water supply, sewerage, waste management, and remediation (0.03 percent).
