Nigeria earns N2.33 trillion from VAT, CIT in Q4 2023 

Nigeria’s economy witnessed a substantial influx of revenue from Value Added Tax (VAT) and Company Income Tax (CIT) in the fourth quarter of 2023, according to the latest figures released by the National Bureau of Statistics (NBS). 

The combined collections from VAT and CIT amounted to approximately N2.33 trillion in the closing quarter of the year.

The VAT collections for Q4 2023 was N1.20 trillion, marking a significant 26.61% increase on a quarter-on-quarter basis from N948.07 billion in Q3 2023.

This increase was driven by a combination of local payments, which amounted to N630.00 billion, foreign VAT payments at N326.27 billion, and import VAT contributions of N244.04 billion. 

Sector-wise, agriculture, mining, and quarrying led the growth rates with an impressive 63.75% increase, closely followed by other services activities at 61.98%. 

However, not all sectors fared as well, with activities of extraterritorial organisations and bodies seeing a decrease in growth rate by 19.44%, and the financial and insurance sectors experiencing an 8.46% decline. 

Manufacturing, information and communication, and mining and quarrying were the top contributors to the VAT collections, showcasing the diverse sources of tax revenue for the nation.

The year-on-year comparison further illustrates the substantial growth in VAT collections, with a 72.12% increase from Q4 2022. 

The VAT report read: 

The Company Income Tax (CIT) was N1.13 trillion, indicating a 35.40% decrease from the previous quarter’s N1.75 trillion. 

This downturn was balanced by contributions from local payments (N533.93 billion) and foreign CIT payments (N596.10 billion).

Notably, the electricity, gas, steam, and air conditioning supply sector recorded the highest growth rate at 79.65%, with construction also showing significant growth. 

Manufacturing maintained its position as a major contributor to CIT, alongside financial and insurance activities and mining and quarrying, underscoring the critical role of these sectors in Nigeria’s tax revenue framework. 

The CIT report read: