FG Generates N1.78 Trillion in VAT for Q3 2024 – NBS

The National Bureau of Statistics (NBS) has reported that the federal government generated N1.78 trillion as Value-Added Tax (VAT) in the third quarter (Q3) of 2024. This represents a 14.16% increase from the N1.56 trillion recorded in the second quarter (Q2) of 2024.

According to Daily Post, VAT is a consumption tax administered by the Federal Inland Revenue Service (FIRS), with revenues distributed to the three tiers of government through the Federation Accounts Allocation Committee (FAAC).

Key Insights from the Report

The NBS highlighted that the Q3 2024 figure marks an 88% increase compared to the N948 billion generated in Q3 2023.

According to the NBS report:
– Local VAT Payments: N922.87 billion
– Foreign VAT Payments: N448.85 billion
– Import VAT Contribution: N410.62 billion

The report also noted significant sectoral growth, with human health and social work activities recording the highest growth rate at 250.39%, followed by households as employers and undifferentiated goods-producing activities at 102.09%.

Conversely:
– Water supply, sewerage, waste management, and remediation activities recorded the lowest growth rate at -41.92%.
– Activities of extraterritorial organizations and bodies saw a rate of -36.14%.

Sectoral Contributions to VAT

The NBS identified the leading sectors contributing to Q3 2024’s VAT revenues:
1. Manufacturing: 22.21%
2. Information and Communication: 20.89%
3. Mining and Quarrying: 18.90%

The least contributors were:
– Activities of households as employers, undifferentiated goods-producing activities for own use: 0.01%
– Activities of extraterritorial organizations and bodies: 0.01%
– Water supply, sewerage, waste management, and remediation activities: 0.03%

This data highlights the economic sectors driving VAT growth and offers insight into consumer spending patterns across Nigeria.

Newsflash Nigeria is an online newspaper that is developed and written exclusively for Nigerians. It’s packed with up-to-the-minute Local and National Economy News, Share & Capital Market, Health, Sports, Education, Technology, Business and Opinions.

To make further advert enquiries or place an order, please contact us at [email protected] and +2348053316946 and WhatsApp number 08033546732