The Federal Government of Nigeria reported a substantial increase in revenue from company income tax (CIT) and value-added tax (VAT) during the third quarter of 2023
According to the latest data from the National Bureau of Statistics (NBS), the combined revenue reached N6.19 trillion, reflecting a remarkable 59.07% surge compared to the corresponding quarter in 2022.
The report revealed that VAT experienced a robust growth of 34.45%, reaching N2.44 trillion compared to N1.81 trillion in the same quarter last year.
Meanwhile, CIT witnessed an even more significant surge, soaring by 80.58% to N3.75 trillion from N2.08 trillion in the third quarter of 2022. This noteworthy increase in tax collections is particularly noteworthy considering the economic challenges faced by the nation throughout the year.
Breaking down the VAT figures, the report indicated that the aggregate VAT for Q3 2023 stood at N948.07 billion, demonstrating a quarter-on-quarter growth rate of 21.34% from N781.35 billion in Q2 2023.
Local payments accounted for N522.08 billion, foreign VAT payments reached N204.58 billion, and import VAT contributed N221.41 trillion during this period.
The three sectors making the most significant contributions to VAT were identified as manufacturing, information and communication, and financial and insurance.
Discussing CIT collection, the NBS stated, “On the aggregate, company income tax for Q3 2023 was reported at N1.75 trillion, indicating a growth rate of 14.27% on a quarter-on-quarter basis from N1.53 trillion in Q2 2023.”
This growth underscores the resilience of tax revenue collection in the face of economic challenges.
The substantial increase in revenue signals positive economic momentum and effective fiscal management, providing a boost to the government’s financial capacity to address national development priorities.
