Nigeria’s Value Added Tax (VAT) collections reached a total of N1.56 trillion collected across various sectors in the second quarter of 2024.
This represented a 9.11% increase from the previous quarter, Q1 2024, where N1.43 trillion was collected.
This is according to the latest report by the National Bureau of Statistics (NBS), which highlights the dynamic nature of Nigeria’s economic landscape, where sectors such as manufacturing, information and communication, and mining and quarrying led the way in VAT contributions.
Manufacturing alone accounted for 11.78% of the total VAT collected, reaffirming its critical role in Nigeria’s economic development.
Similarly, the information and communication sector contributed 9.02%, driven by the rising demand for data services and digital infrastructure development.
The report also indicates notable growth in several sectors on a year-over-year basis. VAT collections increased by 99.82% compared to Q2 2023, with sectors such as human health and social work activities recording the highest growth rate of 98.44% quarter-on-quarter, followed closely by agriculture, forestry, and fishing, which grew by 70.26%.
On the flip side, some sectors faced declines, such as activities of households as employers, which dropped by 46.84%, and real estate activities, which decreased by 42.59%.
Below are the top 10 sectors that paid the most VAT in Nigeria in Q2 2024 according to data from the NBS:
In Q2 2024, the Professional, Scientific, and Technical Activities sector contributed N10.39 billion in VAT, marking a 47% year-over-year growth from N7.07 billion in Q2 2023.
The Administrative and Support Services sector contributed N13.29 billion in VAT in Q2 2024, reflecting a 122% increase year-over-year from N5.97 billion in Q2 2023.
The Transportation and Storage sector saw a VAT contribution of N23.01 billion in Q2 2024, which represents a 39% year-over-year increase from N16.54 billion in Q2 2023.
The Financial and Insurance sector paid N82.55 billion in VAT in Q2 2024, marking a 44% increase year-over-year from N57.27 billion in Q2 2023 and a 26% quarter-over-quarter increase from N65.62 billion in Q1 2024.
The Public Administration and Defence sector contributed N84.88 billion in VAT in Q2 2024, reflecting a remarkable 122% year-over-year increase from N38.17 billion in Q2 2023 and a 51% quarter-over-quarter increase from N56.12 billion in Q1 2024.
The Mining and Quarrying sector paid N137.18 billion in VAT in Q2 2024, up by 155% year-over-year from N53.79 billion in Q2 2023 and 34% quarter-over-quarter from N102.24 billion in Q1 2024.
The Information and Communication sector contributed N140.80 billion in VAT in Q2 2024, marking a 30% increase year-over-year from N108.48 billion in Q2 2023 and a 22% quarter-over-quarter increase from N115.55 billion in Q1 2024.
The Manufacturing sector paid the highest VAT in Q2 2024, contributing N183.89 billion. This marks a 21% increase year-over-year from N151.78 billion in Q2 2023 and a 4% quarter-over-quarter increase from N177.17 billion in Q1 2024.
The Manufacturing sector paid the highest VAT in Q2 2024, contributing N183.89 billion. This marks a 21% increase year-over-year from N151.78 billion in Q2 2023 and a 4% quarter-over-quarter increase from N177.17 billion in Q1 2024.