Real sector leads VAT contributions in Q2

Despite the many troubles and severe macroeconomic headwinds facing local manufacturers across the country, the real sector contributed a significant share to the country’s Value Added Tax (VAT) in Q2 2024 with 11.78 per cent.

This was closely followed by the information and communication as well as mining and quarrying sectors with with 9.02 per cent and 8.79 per cent respectively.

This was revealed in the latest VAT report for the second quarter of the year by the National Bureau of Statistics (NBS).

On the aggregate, VAT for Q2 was reported at N1.56 trillion, showing a growth rate of 9.11 per cent on a quarter-on-quarter basis from N1.43 trillion in Q1 2024. However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82 per cent from Q2 2023.

Local payments recorded were N792.58 billion; foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in the quarter under review. On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44 per cent, followed by agriculture, forestry and fishing with 70.26 per cent and water supply, sewerage, waste management and remediation activities with 59.75 per cent.

On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84 per cent, followed by real estate activities with 42.59 per cent.

The report added that activities of households as employers, undifferentiated goods and services producing activities of households for own use recorded the least share with 0.00 per cent, followed by activities of extraterritorial organisations and bodies with 0.01 per cent and water supply, sewerage, waste management and remediation activities with and real estate services 0.04 per cent each.