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Nigeria’s VAT earnings increases by N530bn, hits N2.03tn –NBS report

ACCORDING to figures from the National Bureau of Statistics, Nigeria’s Value Added Tax receipts totaled N2.03 trillion in 2021.

When compared to the N1.53 trillion generated in 2020, the money generated from VAT in 2021 represents a N530 billion increase.

According to a data released by the National Bureau of Statistics on Friday, the country earned N563.72 billion in VAT in Q4, up 12.63 percent from the previous quarter.

VAT revenues in Q4 2021, on the other hand, climbed by 23.98% from Q4 2020, according to the study.

Based on a report in December the total VAT collected in the first, second, and third quarters of 2021 was N496.39 billion, N512.25 billion, and N500.49 billion, respectively, compared to N324.58 billion, N327.20 billion, and N424.71 billion in the same periods previous year.

“This shows higher revenue in the first three quarters of 2021, revealing an improvement in collections.

“On a year-on-year basis, this upsurge shows growth rates of 52.93 per cent in Q1 2021, 56.56 per cent in Q2 2021 and 17.84 per cent in Q3 2021,” the NBS had said.

Collections from other manufacturing activity, professional services activity, and state ministries and parastatals accounted for the top three highest shares of revenue in Q1 2021, with N49.41bn (21.97%), N42.5bn (18.9%), and N26.96bn (11.99%), respectively.

Nonetheless, the NBS stated that non-import VAT (local) was N224.85 billion, non-import VAT (foreign) was N171.66 billion, and NCS-Import VAT was N99.88 billion.

Other manufacturing activity, professional services activity, and commercial and trading activity, with N44.89 billion (23.95 percent), N29.30 billion (15.63 percent), and N21.96 billion (11.71 percent), respectively, accounted for the highest collections in Q2 2021.

Non-import VAT was N187.43 billion in Q2, down from N187.43 billion in Q1; non-import (foreign) VAT was N207.69 billion, up from N207.69 billion in Q1; and NCS-Import VAT was N117.13 billion, up from N117.13 billion in Q1.

While according to NBS data, manufacturing, ICT, and mining & quarrying activities accounted for the top three greatest shares of total income collected in Q3 2021, with 30.87 percent (N91.20 billion), 20.05 percent (N59.25 billion), and 9.62 percent (N28.44 billion), respectively.

Reports also from bureau revealed that the collections of non-import VAT (local) and NCS-Import VAT were higher in Q2 2021.

While for Q4 2021, the NBS said, “In terms of sectoral contributions, the top three largest shares in Q4 2021 were manufacturing with 30.86 per cent; information and communication with 18.72 per cent and mining and quarrying with 9.91 per cent.”

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