Value Added Taxes Hit N697 Billion in Q4 2022

According to data released by the National Bureau of Statistics (NBS), Nigeria recorded a VAT revenue of N697.38 billion in Q4 2022. The figures indicate a quarterly growth rate of 11.51%, with the revenue increasing from N625.39 billion in Q3 2022. VAT collections in Q4 2022 saw a year-on-year increase of 23.71% compared to Q4 2021.

During the reference quarter, the country recorded a local VAT payment of N408.12 billion, foreign VAT of N159.83 billion, and import VAT of N129.43 billion.

The arts, entertainment, and recreation sector saw the highest growth rate on a quarter-on-quarter basis, with a 43.82% increase. The sector with the second-highest quarter-on-quarter growth rate was human health and social work activities, which recorded a growth rate of 35.82%. 

Agriculture, forestry, and fishing, as well as activities of extraterritorial organizations and bodies, experienced the lowest growth rates on a quarter-on-quarter basis, with -30.12% and -19.81%, respectively. 

Also Read: ExxonMobil Wants to Unblock the Stalled Sale of its Nigerian Assets

In Q4 2022, the manufacturing sector made the largest contribution to VAT with 32.17%, followed by the information and communication sector with 18.05%, and public administration and defense, compulsory social security sector with 9.87%. 

Sector-by-Sector Contribution

The accommodation and food service activities sector contributed N5.075 billion in VAT. At the same time, extraterritorial organizations and bodies paid N191.6 million, and activities of households as employers paid N38.16 million in VAT. Administration and support services paid N4.5 billion, agriculture, forestry & fishing paid N976 million in VAT, and arts, entertainment & recreation paid N1.4 billion in VAT. 

Construction paid N5.38 billion in VAT, education contributed N6.4 billion, and electricity, gas, steam & air conditioning supply paid N3.3 billion in VAT. Financial and insurance services paid N30.477 billion, the human health and social work sector paid N1.097 billion, and the information and communication sector paid N73.659 billion. 

Also Read: Naira Redesign: Cash Remains Scarce After Supreme Court Ruling

Manufacturing made the highest contribution with N131.285 billion, mining & quarrying contributed N39.3 billion, and real estate activities contributed a VAT of N974 million. 

To summarize, Nigeria’s VAT revenue for the year 2022 amounted to approximately N2.51 trillion, representing a 21.2% increase from the N2.07 trillion generated in 2021.

Subscribe to Notifications