Tax Revenue in Nigeria Increases to N1.78 Trillion in the Third Quarter of 2024 The Value-Added Tax (VAT) revenue that Nigeria generated in the third quarter of 2024 was a total of N1.78 trillion, which represents a considerable increase over the previous quarter's figure.
According to the National Bureau of Statistics (NBS), this is a 14.16 percent increase when compared to the N1.56 trillion that was collected during the second quarter by the government. The comparison to the previous year revealed even more significant development, with the statistics for the third quarter of 2024 showing a rise of 88 percent from the N948 billion that was reported in the same quarter of 2023.
It is the responsibility of the Federal Inland Revenue Service (FIRS) to oversee the collection of value-added tax (VAT), which is then distributed among the federal government, state governments, and municipal governments by means of the Federation Accounts Allocation Committee (FAAC).
According to the report, the revenue for the third quarter of 2024 was broken down as follows: local VAT payments contributed N922.87 billion, overseas VAT payments provided N448.85 billion, and import VAT amounted to N410.62 billion. In addition, the NBS highlighted growth trends that were specific to each industry throughout the quarter.
A growth rate of 250.39 percent was recorded for activities related to human health and social work, which was the greatest growth rate. This was then followed by activities connected to the household, which witnessed an increase of 102.09 percent. However, there were several industries that experienced a drop.
The most significant decrease was seen in the areas of water supply, sewerage, waste management, and remediation operations, which all experienced a contraction of 41.92 percent. On the other hand, extraterritorial organisations and bodies dropped by 36.14 percent.
Manufacturing was the industry that contributed the most to the total revenue generated by VAT, accounting for 22.21 percent of the total. The information and communication sector came in second, accounting for 20.89 percent of the total. With 18.90 percent of the total, mining and quarrying placed in third place.
At the bottom end of the spectrum, the activities of homes as employers and extraterritorial organisations each accounted for a negligible 0.01 percent, while the activities related to water supply contributed 0.03 percent. According to the research, the value-added tax (VAT) is becoming an increasingly significant source of revenue, which is a reflection of the increased economic activity and higher tax compliance in the country.
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