Nigeria generated a total sum of N4.59 trillion from Value Added Tax (VAT) in just 5-years. This is according to data from the National Bureau of Statistics, NBS.
A cursory look at the revenue generated from VAT in Nigeria shows that VAT revenue has been on the rise in terms of its nominal value. However, growth trend has actually fluctuated.
Some Key Stats:
• Nigeria generated N481 billion from VAT through the four quarters of 2013.
• In 2014, revenue generated from VAT increased by 3% year-on-year to N493.95 billion.
• VAT generated rose significantly in 2015 with a 54% year-on-year increase. Total VAT generated in 2015 amounted to N759.4 billion.
• VAT revenue fell in 2016 as the country recorded 2% growth year-on-year. Although, total VAT still increased to N777.5 billion.
• In the year 2017, VAT increased by 27% to N972.35 billion, representing a 25% growth year-on-year.
• Nigeria hit the N1 trillion mark in 2018, as total VAT generated increased to N1.108 billion, representing a 14% increase in VAT year-on-year.
Break down of VAT revenue
The highest VAT for 2013 was generated in the last quarter with N127.8 billion, while the third quarter marked the lowest VAT with N114.9 billion. There was a 4% decline in VAT in the second quarter of 2013. However, 2014 ended with 11% increase as VAT increased by 127.8 billion quarter-on-quarter.
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Similarly, VAT revenue increased in the year 2014 to N759.4 billion. The highest VAT was generated in the last quarter, while the third quarter recorded the lowest VAT of N116 billion.
In 2015, Nigeria witnessed a sharp rise in VAT in the first quarter with about 54% increase quarter-on-quarter. In the first quarter, total VAT generated rose to N196 billion, compared to N128.5 billion in the preceding quarter.
However, Nigeria’s VAT revenue dropped in the fourth quarter of 2015 and mid-2016. Quarter-on-quarter, VAT grew by 7% in the first quarter of 2016, compared to 53% recorded in the corresponding quarter of 2015. The total VAT generated in 2015 was N759 billion and 2016 also stood at N777.5 billion.
Over the past two years, VAT improved most in 2017, but slightly dropped in 2018. Year-on-year, VAT increased by 25% to N972.3 billion in 2017, while it increased by 14% to the all-time high of N1.108 trillion in 2018.
Nairametrics
