The latest report by the National Bureau of Statistics (NBS) has revealed that Nigeria’s Value Added Tax (VAT) collection reached a record N1.95 trillion in the fourth quarter (Q4) of 2024.

This marks a 9.23% increase from the N1.78 trillion recorded in Q3 2024, reflecting improved tax compliance, economic activity, and possibly the effects of inflation on prices.

This is according to the report titled Sectoral Distribution of Value Added Tax Q4 2024 from the National Bureau of Statistics (NBS).

“On aggregate, Value Added Tax (VAT) for Q4 2024 was reported at N1.95 trillion, showing a growth rate of 9.23% on a quarter-on-quarter basis from N1.78 trillion in Q3 2024. Domestic payments were N917.40 billion, non-import foreign VAT payments were N554.68 billion, while import VAT contributed N474.75 billion in Q4 2024,” NBS noted.

On a quarter-on-quarter basis, NBS stated that the activities of extraterritorial organizations and bodies recorded the highest growth rate with 180.05%, followed by agriculture, forestry, and fishing with 70.83%, and human health and social work activities with 46.13%.

Meanwhile, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, contracted by 28.97%, followed by information and communication with 23.00%, according to the NBS.

In terms of sectoral contributions, the NBS report reveals that the top three largest shares in Q4 2024 were manufacturing with 25.89%, information and communication with 16.18%, and mining and quarrying with 15.52%.

Moreover, the least contributing activity during the quarter was activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, which recorded the least share with 0.01%; followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, and waste management with 0.04% contribution each.