Nigeria’s VAT Revenue Rises by 10% in Q2 2023: NBS Report

The National Bureau of Statistics (NBS) has released its Value Added Tax (VAT) report for the second quarter of 2023, showing that Nigeria’s VAT revenue increased by 10.11% to N781.35 billion from N709.59 billion in the first quarter.

According to the report, the VAT revenue was generated from three sources: local payments, foreign payments, and import VAT. Local payments accounted for N512.03 billion, foreign payments for N142.63 billion, and import VAT for N126.69 billion in Q2 2023.

The report also revealed the growth rates and sectoral contributions of different economic activities to the VAT revenue. The activities of extraterritorial organizations and bodies recorded the highest growth rate of 212.06%, followed by real estate activities with 123.09%.

On the contrary, the activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate of -57.06%, followed by agriculture, forestry, and fishing with -32.86%.

In terms of sectoral contributions, the top three sectors that generated the largest shares of VAT revenue in Q2 2023 were manufacturing with 29.64%, information and communication with 21.19%, and financial and insurance activities with 11.18%.

The NBS report provides insights into the performance of Nigeria’s economy in the second quarter of 2023, as well as the impact of the VAT policy on different sectors and activities. The report can be accessed on the NBS website.

The growth in VAT revenue is a positive development for the Nigerian economy. It shows that businesses are still active and generating revenue, even in the face of the current economic challenges.

The government can use the VAT revenue to fund essential services, such as healthcare, education, and infrastructure.

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