During the second quarter of 2023, Nigeria’s Value Added Tax (VAT) collections continued their upward trajectory, surging to a total of N781.35 billion, as reported by the latest data from the National Bureau of Statistics (NBS).
This impressive figure signifies a significant 10.11% growth when compared to the preceding quarter, which recorded N709.59 billion in VAT collections.
This report delves into the specifics of this growth, shedding light on key sectors and trends within the VAT landscape.
Analyzing the VAT collections for Q2 2023, the data offers intriguing insights. Local payments dominated the landscape, accounting for the majority at N512.03 billion, while Foreign VAT Payments made a substantial contribution of N142.63 billion.
Import VAT also played a noteworthy role, adding N126.69 billion during the same period.
When dissecting the quarter-on-quarter growth rates across sectors, extraterritorial organizations and bodies emerged as the frontrunners with an astonishing growth rate of 212.06%.
Following closely behind was the real estate sector, which exhibited robust growth at a rate of 123.09%.
Challenges Faced by Household and Agricultural Sectors
However, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use encountered challenges, experiencing the lowest growth rate at -57.06%.
Agriculture, forestry, and fishing also faced hurdles, with a growth rate of -32.86%.
In terms of sectoral contributions to VAT collections in Q2 2023, manufacturing led the way, commanding a significant share of 29.64%.
The information and communication sector secured the second position, contributing 21.19%, closely followed by financial and insurance activities at 11.18%.
Conversely, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest contributions, accounting for a mere 0.01%.
Comparing Q2 2023 to the same quarter in the previous year, VAT collections exhibited substantial growth, registering an impressive 30.19% increase from Q2 2022.