Nigeria Generates ₦2.03tn From VAT In 2021 – NBS

The National Bureau of Statistics (NBS) has stated that Nigeria’s earnings from Value Added Tax (VAT) rose by ₦530bn and hit ₦2.03tn in 2021.

In a report released on Friday, the NBS said the revenue generated from VAT in 2021 (N2.03tn) surpasses ₦1.53tn generated in 2020.

The bureau added that the country earned ₦563.72bn from VAT in Q4, showing a growth of 12.63 per cent, quarter-on-quarter.

According to the report, on a year-on-year basis, VAT collections in Q4 2021 increased by 23.98 per cent from Q4 2020, the report added.

The report said: “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 bureau said manufacturing activity; professional services activity; and state ministries and parastatals accounted for the top three largest shares of revenue in Q1 2021 with ₦49.41bn (21.97 per cent), ₦42.5bn (18.9 per cent), and ₦26.96bn (11.99 per cent) respectively.

Nevertheless, the NBS added that non-import VAT (local) was ₦224.85bn, non-import (foreign) VAT amounted to ₦171.66bn, while NCS-Import VAT stood at ₦99.88bn.

Similarly, other manufacturing activity; professional services activity; and commercial and trading activity accounted for the top largest collections in Q2 2021 with ₦44.89bn (23.95 per cent), ₦29.30bn (15.63 per cent) and ₦21.96bn (11.71 per cent) respectively.

Non-import VAT local was ₦187.43bn in Q2, lower than Q1; non- import (foreign) VAT stood at ₦207.69bn, higher than Q1, while NCS-Import VAT rose to ₦117.13bn, an improvement from the preceding quarter.

For Q3 2021, NBS data shows that manufacturing activity; Information and Communication Technology activity; and mining & quarrying activity accounted for the top three largest share of total revenue collected sector-wise, representing 30.87 per cent (N91.20bn), 20.05 per cent(N59.25bn) and 9.62per cent (N28.44bn) respectively.

Under the quarter, the bureau said collections of non-import VAT (local) and NCS-Import VAT were higher than the Q2 2021.

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.”