Nigeria Generated N600bn From VAT In Q2 2022 — Up By 2% From Previous Quarter – NBS

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The National Bureau of Statistics (NBS) says the country generated N600.15 billion as value-added tax (VAT) in the second quarter of 2022.

The figure represented an increase of 1.96 percent from the N588.59 billion generated in Q1 2022.

The NBS said this in its latest sectoral distribution of value-added tax for Q2 2022, released on Saturday.

According to the report, local payments of VAT amounted to N359.12 billion in Q2 2022.

“On the aggregate, value-added tax (VAT) for Q2 2022 was reported at N600.15 billion, showing a growth rate of 1.96 percent on a quarter-on-quarter basis from N588.59 billion in Q1 2022,” the report reads.

“Local payments recorded were N359.12 billion, while foreign VAT payment contributed N111.13 billion in Q2 2022.

Nigeria Generated N600bn From VAT In Q2 2022 — Up By 2% From Previous Quarter – NBS

“On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47 percent, followed by accommodation and food service activities with 42.44 percent.

The report added that activities of extraterritorial organizations and bodies had the lowest growth rate with -42.39 percent, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with -36.57 percent.

On sectoral contributions, the top three largest shares in Q2 2022 were manufacturing with 33.08 percent; information and communication with 18.98 percent; and mining and quarrying with 10.60 percent.

Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 percent, followed by activities of extraterritorial organizations and bodies with 0.05 percent, and water supply, sewerage, waste management and remediation activities with 0.13 percent.

However, on a year-on-year basis, VAT collections in Q2 2022 increased by 17.16 percent from Q2 2021.

VAT is a consumption tax which is administered by the Federal Inland Revenue Service (FIRS).

Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).

The 7.5 percent VAT rate became effective on February 1, 2020.