Nigeria has seen a significant surge in value-added tax (VAT) revenue in the first half of 2023, generating a staggering N1.49 trillion, according to the National Bureau of Statistics (NBS).
Gatekeepers News reports that according to the latest NBS report released on Monday, this impressive figure marks a remarkable 25 percent increase when compared to the N1.18 trillion recorded during the same period in 2022.
VAT, which is a consumption tax, is administered by the Federal Inland Revenue Service (FIRS), and the generated revenue is typically disbursed among the three tiers of government through the Federation Accounts Allocation Committee (FAAC).
The NBS report further highlights that Nigeria’s VAT collection experienced a 10.11 percent growth in the second quarter of 2023, reaching N781.35 billion, up from N709.59 billion in the first quarter.
Analyzing the data, local payments contributed N948.13 billion to this impressive total, with foreign VAT payments adding N293.76 billion, while N249.06 billion came from import VAT throughout the initial six months of the year.
The report also delves into specific sectors, with the manufacturing industry leading the way by contributing the highest revenue of N281.1 billion. This represents a remarkable 25 percent growth compared to the first half of 2022.
Following closely is the Information and Communication sector, reporting N192.59 billion in revenue, signifying a 52 percent growth when compared to the same period last year.
Additional sectors making notable contributions include Mining and Quarrying (N107.19 billion), Financial and Insurance activities (N92.67 billion), and Public Administration and Defence (N70.98 billion).
