NBS Report Shows How FG Got N709 Billion VAT in Q1 2023

On Tuesday, the National Bureau of Statistics released a statement on how the federal government was able to generate N709.59 billion as Value Added Tax (VAT) in Q1 2023 compared to the 2022 VAT report.

The NBS released this development under the "Sectoral Distribution of Value Added Tax" for Q1 2023 on Tuesday.

The office of the NBS further clarified that the figures show a growth rate of 1.75% on a quarter-on-quarter basis growth from N697.38 billion in Q4 2022.

A breakdown of the total figure generated shows local payments generated N436.10 billion, foreign VAT payments generated N151.13 billion, and import VAT generated a total of N122.37 billion in Q1 2023.

On the quarter-on-quarter basis reviewed by the NBS shows that household activities recorded the highest growth rate at 349.86% followed by construction with 95.64%.

“On the other hand, activities of extraterritorial organizations and bodies had the lowest growth rate with –53.54 percent, followed by real estate activities with –47.01 percent,” the report said.

According to the report sectoral contributions which showed the top three largest shares in Q1 2023, manufacturing recorded 29.65%, information and communication recorded 19.29%, while mining & quarrying recorded 12.24%

“Conversely, activities of extraterritorial organizations and bodies recorded the least share with 0.02%, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 0.03%; and water supply, sewerage, waste management, and remediation activities with 0.04%,” the report said.

With the overall report, the NBS said that on a year-on-year basis, VAT collections in Q1 2023 increased by 20.56% from Q1 2022.

About the CIT

The NBS said the Company Income Tax (CIT) data for Q1 2023 recorded N469.01 billion. The figure shows a growth rate of -37.79% on a quarter-on-quarter basis from N753.88 billion in Q4 2022.

The report also showed that local payments received N300.78 billion and foreign CIT payments generated N168.23 billion in Q1 2023.

The bureau said on a quarter-on-quarter basis, financial and insurance recorded a 50.42% growth rate while construction recorded a 42.32%

In the same report, waste management, sewerage, water supply, and remediation activities recorded the lowest growth rate at -69.38% which was followed by other service activities at -60.13%.

The report according to the NBS said that the top three largest shares in Q1 2023 were financial & insurance activities at 22.94%, manufacturing recorded at 20.91%, and information and communication recorded at 11.89%.

At the end of the CIT report, activities of households recorded the least share with 0.01% followed by water supply, waste management, sewerage, and remediation activities came with 0.04%, and activities of extraterritorial organizations and bodies came with 0.12%.

“However, on a year-on-year basis, CIT collections in Q1 2023 decreased by 14.96 percent from Q1 2022,” it said.