VAT records 1.96% growth in Q2, hits N600.15 billion

Electricity, gas, steam and air conditioning supply were the main indicators that led the highest growth rate on a quarter-to-quarter basis with 116.47 percent, followed by accommodation and food service activities with a 42.44 percent growth rate.

The growth rate witnessed in the second quarter of the year shows a 17.16 percent increase on a year-on-year basis.

According to the NBS report, the N600.1 billion recorded in Q2 2022 represents a 1.96 percent increase when compared to N588.59 billion recorded in Q1 2022.

The figure recorded in Q1 2022 represented a growth of 4.41 percent on a quarter-on-quarter basis from the N563.72 billion recorded in the last quarter of 2021 while on a year-on-year basis, VAT collections recorded in Q1 of 2022 increased by 18.58 percent compared to the collection in the corresponding quarter in 2021.

More details on the report further revealed that local payments in Q2 made up more of the funds to the tune of N359.12 billion (Q1 - N344.04 billion) while N111.13 was realized as VAT payments from foreign sources in Q2 (N117.99 billion in Q1)

In Q2, three major industries were recognized as biggest contributors to the high VAT figures which include manufacturing, information and communication, and mining and quarrying with contributions of 33.08%, 18.98 and 10.60% respectively. 

These industries were also recorded as the biggest sector contributors in Q1 as they recorded 32.84 percent, 17.10 percent and 11.85 percent respectively.

The lowest growth rate was recorded by extraterritorial organizations and bodies at –42.39 percent (0.05 percent sector contribution).

This was closely followed by households as employers, undifferentiated goods- and services-producing activities of households for own use with –36.57% (0.03 Percent sector contribution). 

Water supply, sewerage, waste management and remediation activities also contributed 0.13% to the total VAT recorded in Q2.