Between October and December 2023, the federal government collected N2.33 trillion in Value Added Tax (VAT) and Company Income Tax (CIT), which was a decrease from the N2.73 trillion it collected in the previous quarter from July to September of the same year.
The most recent data from the National Bureau of Statistics (NBS) shows that total VAT collected in the fourth quarter of 2023 amounted to N1.20 trillion, an increase from the N948.07 billion collected in the previous quarter. The breakdown of the VAT collection for Q4 2023 includes N630.00 billion from local payments, N326.27 billion from foreign VAT payments, and N244.04 billion from import VAT.
This represents a decrease of 14.7 percent in tax revenue compared to the income in the previous quarter. The drop was mainly due to a 35.4 percent decrease in Corporate Income Tax (CIT) revenue, despite a 26.61 percent increase in Value Added Tax (VAT) revenue for the government.
Agriculture, mining, and quarrying saw the most significant growth rate at 63.75 percent compared to the previous quarter, followed closely by other service activities at 61.98 percent.
Conversely, extraterritorial organizations and bodies experienced the smallest increase in activities, showing a growth rate of -19.44 percent, while the financial and insurance sector followed closely behind with a growth rate of -8.46 percent.
The most significant contributions by sector in Q4 2023 were from manufacturing at 13.24%, information and communication at 10.02%, and mining and quarrying at 7.91%.
Despite this, the activities of households for their own use had the smallest share at 0.00%, followed by extraterritorial organizations, water supply, waste management, and real estate activities with 0.03% and 0.07%, agriculture, forestry, and fishing at 0.10%. Nonetheless, there was a significant increase of 72.12% in VAT collections in Q4 2023 compared to Q4 2022.
In Q4 of 2023, there was a decrease of 35.40% in Company Income Tax (CIT) compared to Q3, with a total of N1.13 trillion recorded. Local payments accounted for N533.93 billion, while Foreign CIT Payment made up N596.10 billion in the same period.
Electricity, gas, steam, and air conditioning supply saw the highest growth rate at 79.65% compared to the previous quarter, while construction followed closely behind at 57.86%. Meanwhile, Information and communication activities experienced a decrease in growth rate at 69.44%, with Public administration and defense, compulsory social security showing the lowest growth rate at -23.75%.
Manufacturing made the largest sectoral contribution in Q4 2024 at 12.84%, followed by Financial and insurance activities at 6.25%, and Mining and quarrying at 5.90%. However, activities such as households as employers, goods and services producing activities of households for own use, water supply, sewerage, waste management and remediation activities, and extraterritorial organizations and bodies had minimal contributions ranging from 0.00% to 0.07%.
