Nigeria’s VAT revenue surpasses N1.49trn in H1 2023 — NBS
By Sodiq Adelakun
Nigeria has seen a significant increase in revenue from value-added tax (VAT) in the first half of 2023, according to data released by the National Bureau of Statistics (NBS).
The country generated N1.49 trillion in VAT revenue during this period, a 25 per cent increase compared to the N1.18 trillion recorded in the first half of 2022.
The revenue generated from VAT is typically disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).
However, the NBS report reveals that VAT collection in Nigeria grew by 10.11 per cent to N781.35 billion in the second quarter of 2023, up from N709.59 billion in the first quarter.
The report also highlights that local payments accounted for N948.13 billion, while foreign VAT payments contributed N293.76 billion.
Import VAT amounted to N249.06 billion in the first six months of the year. In terms of sectors, the manufacturing sector recorded the highest revenue of N281.1 billion, representing a 25 per cent growth compared to the first half of 2022.
The Information and Communication sector followed closely with N192.59 billion in revenue, a 52 per cent increase from the same period last year.
Other sectors that contributed to VAT revenue include mining and quarrying (N107.19 billion), financial and insurance activities (N92.67 billion), and public administration and defense (N70.98 billion).
The increase in VAT revenue is a positive sign for Nigeria’s economy, as it indicates growth and increased consumption.
The government will now have more funds to allocate to various sectors and projects, which can help stimulate further economic development.
It is important for the government to continue implementing effective tax policies and ensuring proper administration of VAT to sustain this growth in revenue.
Meanwhile, the increase in VAT revenue reflects a positive trend for Nigeria’s economy and demonstrates the potential for further growth and development in the coming months.
