- Nigeria’s Q2 2023 VAT collections reached N781.35 billion, a 10.11% growth from the previous quarter.
- Extraterritorial organizations and real estate saw the highest growth rates, while agriculture and household-related activities declined.
- Manufacturing (29.64%), information and communication (21.19%), and financial activities (11.18%) were the top sectors contributing to VAT collections
In the second quarter of 2023, Nigeria’s Value Added Tax (VAT) collections maintained their upward trend, surging to a grand total of N781.35 billion, as per the most recent data released by the National Bureau of Statistics (NBS).
This outstanding achievement signifies an impressive growth rate of 10.11% when juxtaposed with the preceding quarter’s VAT collections, which stood at N709.59 billion.
On the aggregate, Value Added Tax (VAT) collection for Q2 2023 was reported at N781.35 billion, indicating a substantial growth rate of 10.11% on a quarter-on-quarter basis from N709.59 billion in Q1 2023.
The breakdown of these collections reveals that local payments accounted for N512.03 billion, Foreign VAT Payments amounted to N142.63 billion, and import VAT made a notable contribution of N126.69 billion in the second quarter of 2023.
When examined on a quarter-on-quarter basis, the activities of extraterritorial organizations and bodies exhibited the most substantial growth rate, surging by an impressive 212.06%. Following closely behind were real estate activities, which recorded a robust growth rate of 123.09%.
On the flip side, the activities of households as employers, as well as undifferentiated goods- and services-producing activities of households for own use, experienced the lowest growth rate, registering a decline of -57.06%. Additionally, agriculture, forestry, and fishing also faced a notable decrease, with a growth rate of -32.86%.
When analyzing sectoral contributions during Q2 2023, the top three sectors with the largest shares were manufacturing leading the way with a substantial share of 29.64%, followed by information and communication at 21.19%, and financial and insurance activities with 11.18%.
However, activities of households as employers and undifferentiated goods- and services-producing activities of households for their own use recorded the smallest shares, each accounting for a mere 0.01%.
Following closely were water supply, sewerage, waste management, and remediation activities, as well as activities of extraterritorial organizations and bodies, both contributing just 0.05%.
In addition, when assessed on a year-on-year basis, VAT collections in Q2 2023 exhibited a substantial increase of 30.19% when compared to Q2 2022.