Nigeria Collected N1.78 Trillion From VAT In Q3 2024

The National Bureau of Statistics (NBS), has revealed that Nigeria’s Value Added Tax (VAT) revenue for Q3 2024 hits N1,782,345,123,638.40 in the third quarter of 2024.

This figure represents a significant 14.16 per cent quarter-on-quarter growth compared to the N1.56 trillion generated in Q2 2024.

“Value Added Tax (VAT) for Q3 2024 was reported at N 1,782,345,123,638.40, showing a growth rate of 14.16 per cent on a quarter-on-quarter basis from N1.56 trillion in Q2 2024. Local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024,” it says.
Breaking down the sources of VAT, local payments accounted for N922.87 billion, making up the largest portion of the total revenue. Foreign VAT payments contributed N448.85 billion, while import VAT added another N410.62 billion to the total.

These figures highlight the robust contribution of both domestic and international transactions to Nigeria’s tax revenue base. In terms of sectoral performance, the Human health and social work activities category recorded the highest growth rate at a staggering 250.39 per cent.

This was followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, which saw a growth rate of 102.09 per cent.

These sectors benefited from increased demand for services and goods, reflecting economic recovery trends and heightened consumer spending in specific areas.
Conversely, some sectors experienced significant contractions. The Water supply, sewerage, waste management, and remediation activities sector recorded the steepest decline at -41.92 per cent followed by Activities of extraterritorial organizations and bodies with a decline of -36.14 per cent.

These declines may indicate sector-specific challenges such as regulatory constraints or reduced demand. This quarter’s VAT revenue growth demonstrates the increasing importance of VAT as a cornerstone of Nigeria’s non-oil revenue stream.

As the government continues to implement policies aimed at diversifying the economy and improving tax compliance, VAT collection has shown steady improvements over recent quarters.
“On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 250.39 per cent. followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.09 per cent.

On the other hand, Water supply, sewerage, waste management and remediation activities had the least growth rate with –41.92 per cent followed by Activities of extraterritorial organizations and bodies with –36.14 per cent,” the NBS said.
In terms of sectoral contributions, the top three largest shares in Q3 2024 were Manufacturing with 22.21 per cent,” Information and Communication with 20.89 per cent,”and Mining & Quarrying activities with 18.90 per cent.