Boom in VAT collection: Health sector grows 250%, ICT follows close NBS

Nigeria’s Value Added Tax (VAT) revenue increased to ₦1.78 trillion in the third quarter of 2024, showing a 14.16% rise compared to the ₦1.56 trillion collected in the previous quarter, according to the National Bureau of Statistics (NBS).

The data shows that most of the VAT came from local payments, which brought in ₦922.87 billion. This was followed by ₦448.85 billion from foreign VAT payments and ₦410.62 billion from VAT on imports.

The biggest growth in VAT contributions came from the human health and social work sector, which increased by 250.39%. This was followed by households acting as employers and other undifferentiated services, which grew by 102.09%. On the other hand, some sectors performed poorly. The water supply, waste management, and sewerage sector dropped by 41.92%, making it the lowest performer. Extraterritorial organizations and bodies also declined by 36.14%.

The sectors that contributed the most to VAT revenue were manufacturing, information and communication (ICT), and mining and quarrying. Manufacturing led with 22.21% of the total VAT collected, ICT followed with 20.89%, and mining and quarrying contributed 18.90%.

In contrast, some sectors made very small contributions. Household services and extraterritorial organizations each contributed just 0.01%, while water-related services made up 0.03% of the total VAT.

Compared to the same period in 2023, VAT revenue increased by 88.00%, suggesting higher economic activity and possibly better tax collection. The NBS releases this information every quarter to show how different sectors support the country’s income and government revenue.