The Digest:
Nigeria's Value Added Tax (VAT) revenue has experienced a significant 84.6% year-on-year increase, reaching N6.7 trillion in 2024, according to the National Bureau of Statistics (NBS). The growth trajectory continued through the year, with Q4’24 showing a 9.5% quarter-on-quarter rise to N1.95 trillion.
Key Points:- VAT revenue climbed 84.6% YoY from N3.64 trillion in 2023 to N6.7 trillion in 2024.
- Q2’24 saw a 9.09% rise from N1.43 trillion to N1.56 trillion.
- Q3’24 recorded a 14% increase, reaching N1.78 trillion.
- Q4’24 VAT revenue rose to N1.95 trillion, up 9.5% from Q3’24.
- Domestic VAT payments for Q4’24 were N917.4 billion, contributing significantly to the total.
- Non-import VAT payments were N554.7 billion, with imports accounting for N474.75 billion in Q4.
- The agriculture, health, and extraterritorial sectors showed the most growth in Q4.
- The information and communication sectors saw a 23% contraction in VAT collection.
The strong VAT performance throughout 2024 reflects resilience across sectors such as agriculture and health, with new economic dynamics shaping the revenue landscape. The 2024 surge points to promising economic trends that may continue in the upcoming year.
Sources: National Bureau of Statistics, Vanguard News
