In a remarkable economic feat, Nigeria’s Value Added Tax (VAT) collections soared to N1.2 trillion in the final quarter of 2023, marking a significant 26% leap from the previous quarter. This robust growth underscores the nation’s expanding economic activities and enhanced tax collection efficiency.
The National Bureau of Statistics (NBS) detailed that local VAT payments constituted N630 billion of the total, with foreign VAT payments at N326.27 billion and import VAT contributing N244.04 billion. The agricultural, mining, and quarrying sectors led this growth spurt, registering a 63.75% increase, while services followed closely with a 61.98% rise.
Conversely, extraterritorial organizations and bodies saw a downturn, with a 19.44% decrease, and the financial and insurance sectors also experienced a contraction of 8.46%. The manufacturing sector contributed the largest share to the VAT pool at 13.24%, with information and communication, and mining and quarrying trailing at 10.02% and 7.91%, respectively.
This fiscal achievement is part of a broader trend, as year-on-year VAT collections in Q4 2023 surged by an impressive 72.12% compared to the same period in 2022. Such figures reflect the government’s successful strategies in broadening the tax base and streamlining collection processes.
As Nigeria navigates its economic landscape, these VAT figures are a beacon of fiscal resilience and potential. They not only represent the government’s capacity to fund development projects but also signal a thriving business environment conducive to both local and foreign investment.
Source: Business Day
