Nigeria’s Value Added Tax (VAT) revenue recorded a significant leap in 2024, rising by 84.6 per cent year-on-year to ₦6.72 trillion from ₦3.64 trillion in 2023, according to the latest data released by the National Bureau of Statistics (NBS).
Figures from the bureau’s VAT report show sustained growth across all quarters of the year. The first quarter of 2024 posted ₦1.43 trillion, climbing 9.09 per cent to ₦1.56 trillion in the second quarter. The upward trajectory continued into the third quarter, with revenue hitting ₦1.78 trillion a 14 per cent rise before closing the year at ₦1.95 trillion in the fourth quarter, up 9.5 per cent from the preceding quarter.
In its Q4 2024 report, the NBS stated: “On aggregate, VAT for Q4 2024 was reported at ₦1.95 trillion, showing a growth rate of 9.5 per cent on a quarter-on-quarter basis from ₦1.78 trillion in Q3 2024. Domestic payments were ₦917.40 billion, non-import foreign VAT payments were ₦554.68 billion, while import VAT contributed ₦474.75 billion in Q4 2024.”
The report further noted that certain sectors experienced remarkable quarterly growth. “Activities of extraterritorial organisations and bodies recorded the highest growth rate with 180.05 per cent, followed by agriculture, forestry and fishing with 70.83 per cent, and human health and social work activities with 46.13 per cent,” the NBS said.
However, some sectors saw declines. “Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use contracted by 28.97 per cent, followed by information and communication with 23 per cent,” the bureau revealed.
Value Added Tax is a consumption tax levied on goods and services at each stage of the production and distribution chain, ultimately borne by the final consumer. In Nigeria, VAT remains a critical non-oil revenue source for the federal government, states, and local councils.
