VAT Hits N948.07b in Q3 2023, Reflecting Robust 21.34% Growth

The National Bureau of Statistics (NBS) has reported that the aggregate Value Added Tax (VAT) rose to N948.07 billion in the third quarter of 2023.

The VAT Q3 2023 Report, unveiled on Monday in Abuja showed a robust growth rate of 21.34% on a quarter-on-quarter basis from N781.35 billion recorded in the preceding quarter.

Breaking down the figures, the report highlighted that local payments accounted for N522.08 billion while foreign VAT payments and import VAT contributed N204.58 billion and N221.41 billion, respectively during the third quarter of 2023.

The sectoral analysis revealed that agriculture, forestry, and fishing experienced the highest growth rate at 91.87% on a quarter-on-quarter basis.

This was closely followed by activities of extraterritorial organizations and bodies, demonstrating an impressive growth rate of 80.25%.

On the flip side, real estate registered the lowest growth rate with -37.68%, followed by construction with -9.54%.

The sectoral contributions in Q3 2023 painted a vivid picture of economic activities with manufacturing accounting for 26.51% of the total VAT.

The information and communication sector trailed with 19.04%, while financial and insurance activities added 12.31%.

Foreign VAT payments played a crucial role, contributing N204.58 billion to the overall aggregate, underscoring the global influence on Nigeria’s economic landscape.

The report’s year-on-year analysis revealed a remarkable 51.60% increase in VAT collections for Q3 2023 compared to the same period in 2022.

This positive trajectory indicates a buoyant economic environment, aligning with the nation’s efforts to bolster revenue streams and drive sustainable growth.

The NBS report not only provides a comprehensive overview of Nigeria’s economic health but also serves as a barometer for policymakers, analysts, and investors to gauge the nation’s fiscal resilience and trajectory in a dynamic global landscape.