NIGERIA RECORDS HIGHEST VAT REVENUE OF N2.07 TRILLION IN 2021 - Dealmakers Bureau De Change

NIGERIA RECORDS HIGHEST VAT REVENUE OF N2.07 TRILLION IN 2021

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NIGERIA RECORDS HIGHEST VAT REVENUE OF N2.07 TRILLION IN 2021

According to a recent 2021 VAT report released by the National Bureau of Statistics (NBS), Nigeria generated a sum of N2.07 trillion as Value Added Tax (VAT) revenue for the year 2021.

According to the report, Nigeria’s VAT revenue jumped by 35.4% in 2021 to N2.07 trillion from N1.53 trillion recorded in year 2020 and a 75% increase compared to N1.18 trillion recorded as VAT in 2019.

Since Nigeria increased her VAT rate from 5% to 7.5% in February 2020, the country’s VAT revenue has recorded a significant boost, further improving the Federal Government’s non-oil revenue.

Here is a breakdown of how the VAT came in, according to data sourced from Nairametrics;

  • A total of N1.04 trillion was collected as local non-import VAT, which accounts for 50.2% of the total VAT revenue for the period under review.
  • On the other hand, foreign non-import VAT accounted for 27.2% of the collections in 2021 with N564.12 billion.
  • Meanwhile, import VAT from the Nigerian Customs Service (NCS) totaled N467.68 billion, representing 22.6% of the VAT revenue.
  • A sum of N512.25 billion was generated in Q2 2021, N500.49 billion in Q3 2021, while N496.39 billion was collected in the first quarter of the year.
  • A disaggregated breakdown of the data shows that the highest quarterly VAT was generated in Q4 2021, which is also the highest ever VAT revenue by Nigeria for any quarter.

The Federal Inland Revenue Service is improving its tax collections, with its company income tax revenue also increasing by 3.6% to N1.69 billion in the same period compared to N1.41 billion recorded in the previous year.

The manufacturing sector, the information and communication sector and the public administration, defense, and compulsory social security sector, remitted the highest VAT of N194.1 billion, N121.6 billion and N55.82 billion respectively in the second half of the year between July and December 2021.

cc: Nairametrics

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