The combined revenue generated by Nigeria from the Value Added Tax (VAT) and Company Income Tax (CIT) at half-year 2024, rose by 83.8 percent to N6.45 trillion, up from N3.51 trillion as of half-year 2023, latest data from the National Bureau of Statistics (NBS) has revealed.
The steady improvement seen in the non-oil revenue earnings confirms the relevance of the task force set up by the Federal Government to improve non-oil revenue generation in the country. Since their inauguration in 2023, the non-oil revenue sources have improved, contributing a sizeable amount to the country’s total revenue mobilisation.
Nigeria realised N984.61 billion and N2.47 trillion from CIT in the first and second quarters of 2024 respectively, cumulatively, N3.45 trillion at half-year 2024. This compares to N469.01 billion and N1.55 trillion realised in the first and second quarters of 2023, cumulatively, N2.02 trillion at half-year 2023. This amounts to an increase of 71.2 percent on a year-on-year basis.
“On the aggregate, Company Income Tax (CIT) for Q2 2024 was reported at N2.47 trillion, indicating a growth rate of 150.83% on a quarter-on-quarter basis from N984.61 billion in Q1 2024. Local payments received were N1.35 trillion, while Foreign CIT Payment contributed N1.12 trillion in Q2 2024. On a quarter-on-quarter basis Agriculture, Forestry and Fishing recorded the highest growth rate with 474.50%, followed by Financial and Insurance activities and Manufacturing with 429.76% and 414.15, respectively,” NBS stated.
In terms of geography, local CIT generated N1.74 trillion at half year 2024, consisting of N386.49 billion in Q1 2024 and N1.35 trillion in Q2 2024. Foreign CIT generated N1.72 trillion, consisting of N598.13 billion in Q1 2024, and N1.12 trillion in Q2 2024.
By sectors, the highest amount of CIT which is N455.98 billion, was generated in the financial and insurance services sub-sector, followed by N265.14 billion in the manufacturing sector; N251.65 billion in the mining and quarrying sector, N242.20 billion from the information and communication sector, as well as N94.68 billion from the public administration and defense sector.
Concerning VAT, total earnings from VAT stood at N2.99 trillion at half year 2024, comprising N1.43 trillion in the first quarter and N1.56 trillion in the second quarter. This compares to N709.59 billion in Q1 2023 and N781.35 billion in Q2 2023.
“On the aggregate, Value Added Tax (VAT) for Q2 2024 was reported at N1.56 trillion, showing a growth rate of 9.11% on a quarter-on-quarter basis from N1.43 trillion in Q1 2024. Local payments recorded were N792.58 billion, Foreign VAT Payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024. On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and Water supply, sewerage, waste management and remediation activities with 59.75%,” NBS stated.
In terms of geography, local VAT generated N1.46 trillion while foreign VAT generated N1.54 trillion in the first six months of this year.
By sectors, the manufacturing sectors generated the highest VAT during the period, amounting to N361.06 billion, followed by information and communication, N256.34 billion; mining and quarrying, N239.41 billion; financial and insurance activities, N148.18 billion, and the public administration and defense, N141.01 billion.
“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 –46.84%, followed by Real estate activities with –42.59%. In terms of sectoral contributions, the top three largest shares in Q2 2024 were manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%,” NBS added.
