Nigeria generates N625bn from Value added tax VAT in third quarter of 2022


The Nigerian treasury swelled today, following the disclosure by the National Bureau of Statistics (NBS) that the country generated N625.39 billion as value-added tax (VAT) in the third quarter of this year.

Value added tax (VAT) is a consumption tax that is administered by the Federal Inland Revenue Service (FIRS).

Income gotten from VAT is usually distributed to the three tiers of government through the federation accounts allocation committee (FAAC).

According to its latest report on the sector by sector distribution of VAT for the third quarter of 2022, which was made public on Monday, NBS said the figure is an increase of 4.21 percent from the N600.15 billion made in the second quarter of 2022.

The local VAT payments in quarter three of 2022 came to N367.93 billion.

On the aggregate, value-added tax (VAT) for Q3 2022 was reported at N625.39 billion, showing a growth rate of 4.21 percent on a quarter-on-quarter basis from N600.15 billion in Q2 2022,” the report reads.

Local payments recorded were N367.93 billion, foreign VAT payments were N121.85 billion, while import VAT contributed N135.61 billion in Q3 2022.

On a quarter-on-quarter basis, the arts, entertainment, and recreation supply activities recorded the highest growth rate with 61.09 percent, followed by activities of extraterritorial organisations and bodies with 44.47.

In terms of sectoral contributions, the top three largest shares in Q3 2022 were manufacturing with 31.08 percent, information and communication with 18.52 percent, and mining and quarrying with 10.95 percent,” NBS said.

Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 percent, followed by activities of extraterritorial organisations and bodies with 0.06 percent, and water supply, sewerage, waste management, and remediation activities with 0.08 percent;, added the report by NBS.

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