Nigeria generates N496b from VAT in Q1

Nigeria generated a total of N496.4 billion from value-added tax (VAT) in the first quarter (Q1 2021).

This is 9.2 percent higher than N454.69 billion generated in Q4 2020 and 52.9 per cent above N324.6 billion realised in the same period last year.

This is contained Q1 2021 VAT data released by the National Bureau of Statistic (NBS) released yesterday.

According to the bureau, other manufacturing generated N49.41 billion to top emerge the highest contributor.

Professional services followed closely with N42.50 billion while state ministries and parastatals generated N26.96 billion.

Mining generated the least and closely followed by pioneering/textile/garment industry with N48.36 million, N77.01 million and N289.41 million generated respectively.

According to the data, out of the total amount generated in Q1, N224.85 billion came from non-import VAT (local) while N171.66 billion was raised from non-import VAT (foreign). The balance of N99.88 billion was from Nigeria Customs Service (NCS)-import VAT.

Nigeria increased VAT by 50 per cent (from 5 to 7.5 per cent) last year. The new rate came to effect on February 1, 2020.