- Nigeria Earned N972.3bn From VAT in 2017 – NBS
The National Bureau of Statistics on Wednesday released the sectoral report for Value Added Tax for the 2017 fiscal period, stating that the country generated a total of N972.34bn from VAT.
An analysis of the VAT report showed that the amount was collected from 28 sectoral activities during the period under review.
A breakdown of the amount showed that the sum of N204.77bn was generated in the first quarter, while the second third and fourth quarters recorded N246.3bn, N250.56bn and N254.1bn, respectively.
In the report signed by the Statistician General of the Federation and Chief Executive, NBS, Dr. Yemi Kale, the bureau said the manufacturing sector generated the highest amount of VAT revenue at N119bn.
This was closely followed by the professional services sector with N87bn.
On the other hand, the report stated that the mining sector generated the least VAT revenue of N168m in the one-year period.
The report read in part, “Sectoral distribution of VAT data for Q4 reflected that the sum of N254.1bn was generated as VAT in Q4 as against N250.56bn in Q3 and N207.35bn in Q4 2016, representing 1.41 per cent increase quarter-on-quarter and 22.55 per cent increase year-on-year.
“Other manufacturing generated the highest amount of VAT with N28.19bn, and closely followed by professional services and commercial reading, both generating N22.34bn and N12.87bn, respectively, while mining generated the least with N32.5m.
“Out of the total amount generated in Q4 2017, N121.09bn was generated as non-import VAT locally, while N79.44bn was generated as non-import VAT for foreign. The balance of N53.57bn was generated as Nigeria Customs Service import VAT.”
The framework under which VAT is administered allows the Federal Government to get 15 per cent of the revenue, while the states and local governments receive 50 per cent and 35 per cent, respectively.
The Minister of Finance, Mrs. Kemi Adeosun, had said that 55 per cent of the revenue generated by the Federal Government from VAT receipts was being collected from Lagos State.
Adeosun, had during a meeting with the Progressive Governors’ Forum, explained that the balance of 45 per cent was being generated from the remaining 35 states of the federation and the Federal Capital Territory.
Giving a breakdown of the receipts from VAT, she said while Lagos accounted for 55 per cent of the revenue, 20 per cent was coming from the FCT.
She added that Rivers, Kano and Kaduna accounted for six per cent, five per cent and one per cent of VAT collection, respectively.