Manufacturing, ICT lead as VAT revenue hits N697bn in Q4 2022



Uba Group

Figures released by the National Bureau of Statistics on Wednesday showed that Nigeria recorded a growth of 11.51 percent in Value Added Tax to N697.38 billion in the last quarter of the financial year ended December 31, 2022.

“On the aggregate, Value Added Tax (VAT) for Q4 2022 was reported at N697.38 billion, showing a growth rate of 11.51% on a quarter-on-quarter basis from N625.39 billion in Q3 2022,” the NBS said.

In terms of sectoral contributions, the top three largest shares in Q4 2022 were manufacturing with 32.17 percent; Information and Communication with 18.05 percent; and public administration and defence, compulsory social security with 9.87 percent.

Breakdown of the aggregate figure showed that local payments recorded were N408.12 billion; Foreign VAT payments were N159.83 billion, while import VAT contributed N129.43 billion in Q4 2022.

On a quarter-on-quarter basis, the arts, entertainment, and recreation activities recorded the highest growth rate with 43.82 percent, followed by human health and social work activities with 35.82 percent.

On the other hand, agriculture, forestry and fishing had the lowest growth rate with –30.12 percent, followed by activities of extraterritorial organizations and bodies with –19.81 percent.

Conversely, 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 activities of extraterritorial organizations and bodies with 0.05 percent; and water supply, sewerage, waste management, and remediation activities with 0.07 percent.

However, on a year-on-year basis, VAT collections in Q4 2022 increased by 23.71 percent from Q4 2021.