Nigeria’s VAT surge by 12% in 3 months – NBS report

Nigeria’s aggregate value added tax (VAT) increased by 11.5 percent in the last three months of 2022, according to the latest Q4 2022 VAT report.

The report by the National Bureau of Statistics (NBS) showed that it rose on a quarter-on-quarter basis to N697.4 billion in Q4 2022 from N625.39 billion in the previous quarter. It also rose on a year-on-year basis by 21.7 percent from N563.7 billion in Q4 2021

“The arts, entertainment, and recreation activities recorded the highest growth rate with 43.8 percent, followed by human health and social work activities with 35.8 percent,” it said.

It said on the other hand, agriculture, forestry and fishing had the lowest growth rate with 30.1 percent, followed by activities of extra-territorial organisations and bodies with 19.8 percent.”

In terms of sectoral contributions, the report showed the top three largest shares in Q4 were manufacturing with 32.2 percent, information and communication with 18.1 percent and public administration and defence, compulsory social security with 9.9 percent.

“On the other hand, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.01 percent.

“This was followed by activities of extra-territorial organisations and bodies with 0.05 percent, and Water supply, sewerage, waste management and remediation activities with 0.07 percent.

The local payments recorded were N408.1 billion, while foreign VAT payments contributed N159.8 billion, and import VAT contributed N129.4 billion in Q4.

The NBS report also revealed that Company Income Tax (CIT) for Q4 stood at N753.9 billion, indicating a growth rate of 6.9 percent on a quarter-on-quarter basis from N810.2 billion in Q3.

“On a quarter-on-quarter basis, the water supply, sewerage, waste management and remediation activities recorded the highest growth rate with 57.40 percent, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 45.2 percent.

“On the other hand, information and communication activities had the lowest growth rate with – 65.8 percent, followed by Arts, entertainment and recreation activities with -64.1 percent,” it added.

In terms of sectoral contributions, the top three largest shares were manufacturing with 31.2 percent; financial and insurance activities with 113 percent and Information and communication activities with 12.8 percent.

Conversely, the 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 water supply, sewerage, waste management, and remediation activities with 0.12 percent and activities of extraterritorial organisations and bodies with 0.14 percent. However, on a year-on-year basis, CIT collections in Q4 increased by 116.8 percent from Q4 of 2021.