The Federal Government’s revenue from Value Added Tax (VAT) and Company Income Tax (CIT) soared by 59.9 per cent, reaching a staggering N8.54 trillion in 2023, up from N5.34 trillion the previous year.
The latest figures released by the National Bureau of Statistics (NBS) for the fourth quarter of 2023 (Q4 2023) unveiled an impressive uptick in VAT collections by 45.02 per cent to N3.64 trillion, compared to N2.51 trillion in 2022.
CIT collections experienced a remarkable surge of 73.14 per cent, hitting N4.9 trillion from N2.83 trillion in the preceding year.
Quarterly data for Q4 2023 showed a robust performance in VAT collections, totalling N1.20 trillion, marking a substantial 26.61 per cent increase quarter-on-quarter from N948.07 billion in Q3 2023.
This surge was fueled by a combination of domestic payments amounting to N630.00 billion, foreign VAT payments at N326.27 billion, and import VAT contributions totalling N244.04 billion.
On a sectoral basis, agriculture, mining, and quarrying exhibited the highest growth rate at 63.75 per cent, followed closely by other services activities at 61.98 per cent. Conversely, activities of extraterritorial organizations and bodies recorded the lowest growth rate at –19.44 per cent, trailed by financial and insurance activities at –8.46 per cent.
In contrast, CIT for Q4 2023 stood at N1.13 trillion, indicating a 35.40 per cent decrease from N1.75 trillion in the previous quarter. Local payments contributed N533.93 billion, while foreign CIT payments amounted to N596.10 billion.
Sectorally, electricity, gas, steam, and air conditioning supply showcased the highest growth rate at 79.65 per cent, followed by construction at 57.86 per cent. Conversely, activities of information and communication experienced a decline of –69.44 percent, while public administration and defense, compulsory social security declined by –23.75 percent.
The top three contributors to CIT in Q4 2023 were manufacturing (12.84 percent), financial and insurance activities (6.25 percent), and mining and quarrying (5.90 percent). However, activities of households as employers, undifferentiated goods and services producing activities of households for own use, water supply, sewerage, waste management, and remediation activities, as well as activities of extraterritorial organizations and bodies, made marginal contributions.