Nigeria Records VAT Revenue Of N496.4 Billion In First Quarter

The National Bureau of Statistics has released a report which reveals that in the first quarter of 2021, Nigeria generated revenue of N496.4 billion from VAT(Value Added Tax) alone, which is an increase of 52.93% year-on-year from 2020.

According to the report, VAT collections in the first three months of this year went 9.17% higher than the previous quarter's N454.7 billion. (Q4 2020) 

It also performed better than the N324.58 billion it recorded in Q1 2020, an increase of 52.93%.

Value Added Tax (VAT) is the tax imposed by the Federal Government on the purchase and consumption of goods and services in the country. Simply put, it is a consumption tax.

Of all the sectors, the manufacturing sector recorded the highest VAT revenue, with N49.41 billion generated. It was closely followed by the Professional Services sector, which recorded revenue of N42.50 billion, and State Ministries & Parastatals, which recorded N26.96 billion revenue.

Sectors that recorded the least revenues include the mining sector, which recorded N48.36 million; the pioneering sector, which recorded N77.01 million; and the textile and garment industry, which saw revenue of N289.41.

Of the total N496.4 billion recorded, locally generated Non-import VAT was to the tune of N224.85 billion, while the foreign generated Non-import VAT was N171.66 billion.

The remaining N99.88 billion was generated as NCS-Import VAT.

This is one of the few times the Manufacturing sector is ahead of the Professional Services sector in revenue remittances. The sector's N49.41 billion is about N7 billion higher than that of the Professional Services sector, which was at N42.5 billion.

After State Ministries and Parastatals who were third with N26.96 billion, the Commercial and Trading sector also performed quite well with N22.8 billion. The Oil-producing sector recorded N15.8 billion revenue, to come in fifth, while the Transportation sector brought in N14.9 billion.

Other sectors on the list include the B3 sector (Breweries, Bottling, and Beverages) which brought in N11.9 billion, and Federal ministries, which brought in N8.8 billion in revenue.

This year has outperformed last year, which saw limited economic operations as the entire country was put on lockdown following the coronavirus pandemic. The increase in VAT points to signs of increased economic activity, which is a good sign that the country's economy is recovering from the pandemic. 

You can find the complete report here.