Nigeria reported positive growth in Value Added Tax (VAT) for the third quarter of 2023 with the aggregate VAT for the period surging to N948.07 billion.
The amount showed a surge of 21.34 percent on a quarter-on-quarter basis, compared to N781.35 billion in the second quarter of 2023.
The latest data from the National Bureau of Statistics (NBS) provides a comprehensive overview of VAT contributions across sectors and illuminates notable trends in economic activities.
According to the report, the agriculture, forestry, and fishing sectors recorded the highest growth with an impressive rise of 91.87 percent on a quarter-on-quarter basis.
Also, the activities of extraterritorial organisations and bodies following this sector closely exhibited substantial growth, recording an 80.25 percent increase.
However, on the laggard side is the real estate sector, which is facing challenges and showing the lowest growth rate of -37.68 percent.
Construction is another sector experiencing contraction, with a growth rate of -9.54 percent.
Further breakdown of contributions by payment categories showed that local payments accounted for N522.08 billion, foreign VAT payments stood at N204.58 billion, and import VAT stood at N221.41 billion.
Of the sectoral contributions, manufacturing led the pack with a substantial increase of 26.51 percent, information and communication secured a significant contribution, accounting for 19.04 percent while financial and insurance activities maintained a strong presence with a share of 12.31 percent.
However, the activities of households as employers and undifferentiated goods- and services-producing activities of households for Their Own Use recorded the least share with 0.02 percent, Water Supply, Sewerage, waste management, and remediation Activities contributed 0.06 percent while activities of extraterritorial organisations and bodies registered a 0.10 percent share.
On the year-on-year growth, VAT collections in the third quarter 2023 exhibited an impressive year-on-year increase of 51.60 percent, reflecting a positive trend from Q3 2022.
The Q3 2023 VAT report underscores the resilience of certain sectors, highlights areas for potential improvement, and provides valuable insights for businesses and policymakers navigating the dynamic economic landscape.
