NBS: VAT revenue grew by N29.9bn to N454.69bn in Q4 2020

Latest figures from the National Bureau of Statistics (NBS) show that the federal government generated N454.69 billion revenue from value-added tax (VAT) in the fourth quarter of 2020.

The NBS which made the disclosure in a report titled ‘Sectoral distribution of value-added tax (Q4 2020)’ released on Wednesday, said VAT revenue generated in the fourth quarter represents an increase of 7.06 percent quarter-on-quarter (QoQ) when compared to the N424.71 billion recorded in the third quarter of 2020 (Q3 2020).

It also represents a 43.39 percent increase year-on-year (YoY) when compared to N308.48 billion generated in Q4 2019.

“Out of the total amounted generated in Q4 2020, N212.52 billion was generated as non-import VAT locally, while N143.35 billion was generated as non-import VAT for foreign,” the report said.

“The balance of N98.81 billion was generated as Nigeria Customs Service (NCS)-import VAT.”

By sector, professional services generated the highest amount of VAT in Q4 2020 with N42.38 billion, followed by other manufacturers generating N39.45 billion; commercial and trading (N25.15 billion); breweries, bottling and beverages (N19.09 billion); and state, ministries and parastatals (16.90 billion).

The mining sector generated the least VAT in Q4 2020 with N58.88 million, followed by pioneering (N185.72 million); textile and garment industry (N353.75 million); pharmaceuticals, soaps and toiletries (N370.32 million) and local government councils (N530.73 million).

Overall, the federal government generated a total sum of N1.53 trillion from VAT in 2020, up by 29.66 percent when compared to N1.18 trillion recorded in 2019; and 37.84 percent increase as against N1.11 trillion in 2018.

The 7.5 percent VAT rate became effective on February 1, 2020.