Federal Gov’t Rakes In N2.33trn From VAT, CIT

The federal government in the last three months of 2023 raked in N2.33trillion in Value Added Tax (VAT) and Company Income Tax (CIT), a decline from N2.73trillion which it made in the preceding quarter between July and September last year.

This is a 14.7 per cent decline in tax income compared to the third quarter income. The depreciation had come from a 35.4 per cent depreciation in CIT quarter on quarter despite a 26.61 per cent growth in VAT income for the government.

According to the latest data released by the National Bureau of Statistics (NBS), aggregate VAT for Q4 2023 was reported at N1.20 trillion, compared to N948.07 billion recorded in Q3 2023.
The NBS noted that local payments recorded were N630.00 billion, foreign VAT payments were N326.27 billion, while import VAT contributed N244.04 billion in Q4 2023.

On a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75 per cent, followed by the other services activities with 61.98 per cent.

On the other hand, activities of extraterritorial organisations and bodies activities had the lowest growth rate with -19.44 per cent, followed by financial and insurance with -8.46 per cent.

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In terms of sectoral contributions, the top three largest shares in Q4 2023 were manufacturing with 13.24 per cent, information and communication with 10.02 per cent and mining and quarrying with 7.91 per cent.

Nevertheless, 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 organizations and bodies, and water supply, sewerage, waste management and remediation activities with 0.03 per cent and real estate activities 0.07 per cent, agriculture, forestry and fishing with 0.10 per cent. However, on a year-on-year basis, VAT collections in Q4 2023 increased by 72.12 per cent from Q4 2022.

At the end of the last quarter of 2023, Company Income Tax (CIT) of N1.13 trillion was recorded, indicating a decline of 35.40 per cent on a quarter-on-quarter basis from N1.75 trillion in Q3 2023. Local payments received were N533.93 billion, while Foreign CIT Payment contributed N596.10 billion in Q4 2023.

On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 79.65 per cent, followed by construction with 57.86 per cent. On the other hand, activities of Information and communication –69.44, and Public administration and defence, compulsory social security –23.75 had the lowest growth rate.

In terms of sectoral contributions, the top three largest shares in Q4 2024 were Manufacturing 12.84 per cent, Financial and insurance activities 6.25 per cent, and Mining and quarrying 5.90 per cent.
Nevertheless, activities of households as employers, undifferentiated goods- and services producing activities of households for own use 0.00 per cent, Water supply, sewerage, waste management and remediation activities 0.02 per cent, and activities of extraterritorial organisations and bodies 0.07 per cent.