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Nigeria’s Foreign VAT Payments Hit N142.63bn in Q2 2023

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The National Bureau of Statistics (NBS) just released some important information about Value Added Tax (VAT) in the second quarter of 2023. According to their report, VAT revenue amounted to N781.35 billion during this period. This figure represents a 10.11 percent increase compared to the previous quarter, which covered January to March and saw VAT revenue at N709.59 billion.

Furthermore, when we look at a year-on-year comparison, the Federal Inland Revenue Service (FIRS), on behalf of the Federal Government, collected 30.19 percent more VAT in the second quarter of 2023 compared to the same quarter in 2022.

The breakdown of VAT collection in Q2 2023 is quite interesting. The majority, N512.03 billion, came from local payments. Foreign VAT payments contributed N142.63 billion, and there was an additional N126.69 billion generated from import VAT during this quarter.

“On a quarter-on-quarter basis, the activities of extraterritorial organizations and bodies recorded the highest growth rate with 212.06%, followed by real estate activities with 123.09%.

“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –57.06%, followed by agriculture, forestry, and fishing with –32.86%,” the report reads.

Meanwhile, manufacturing, information and communication, as well as financial and insurance activities recorded the largest contribution, while the lowest contribution came from activities of households as employers, undifferentiated goods- and services-producing activities of households for own use.

“In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing with 29.64%; information and communication with 21.19%; and financial and insurance activities with 11.18%,” NBS noted.

“However, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01%, followed by water supply, sewerage, waste management, and remediation activities with 0.05%; and activities of extraterritorial organizations and bodies with 0.05%.

“In addition, on a year-on-year basis, VAT collections in Q2 2023 increased by 30.19% from Q2 2022,” the Bureau added.

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