The National Bureau of Statistics (NBS) has revealed a significant rise in Nigeria’s Value Added Tax (VAT) revenue, reaching N1.78 trillion in the third quarter (Q3) of 2024.
This figure represents a 14.16 percent quarter-on-quarter growth compared to the N1.56 trillion collected in Q2 2024.
On a year-on-year basis, VAT revenue surged by 88 percent from N948 billion in Q3 2023, highlighting a robust economic recovery.
According to the NBS report, local VAT payments accounted for N922.87 billion, foreign VAT payments added N448.85 billion, and import VAT contributed N410.62 billion.
In terms of sectoral contributions, manufacturing led with 22.21 percent, followed by information and communication with 20.89 percent, and mining and quarrying activities at 18.90 percent.
However, some sectors experienced declines, with water supply, sewerage, and waste management activities reporting a negative growth rate of –41.92%.
This performance underscores the potential for further economic growth, provided government policies continue to support businesses.
By leveraging these gains, the government can channel increased revenues into infrastructure, healthcare, and other public services to improve the standard of living for Nigerians.
“On the aggregate, Value Added Tax (VAT) for Q3 2024 was reported at N1.78 trillion,” the NBS noted, signaling optimism for sustained fiscal growth.
