VAT collection in Nigeria soars to N1.95 trillion in the fourth quarter of 2024, marking a 62% increase compared to the same period the previous year, according to the National Bureau of Statistics.
Nigeria's Turbo Tax Collection Hits Record High in Q4 2024
Nigeria's Value Added Tax (VAT), often referred to as Turbo Tax due to its significant impact, reached a new record of N1.95 trillion in the fourth quarter of 2024, marking a significant increase of 9.23% from the N1.78 trillion collected in Q3 2024.
The manufacturing sector led the sectoral contributions, accounting for 25.89% of the total Turbo Tax collected. The mining and quarrying sector followed closely with a contribution of 15.52%, while the information and communication sector contributed 16.18%.
Agriculture, forestry, and fishing experienced a growth rate of 70.83%, and human health and social work activities saw a growth of 46.13%. However, activities of extraterritorial organizations and bodies, as well as water supply, sewerage, and waste management, had minimal contributions of 0.04% each.
Activities of households as employers contracted by 28.97% in Q4 2024, and undifferentiated goods- and services-producing activities of households for own use had a contribution of only 0.01%. On the other hand, the sector with the highest growth rate was Activities of extraterritorial organizations and bodies, which showed an impressive growth of 180.05%, although there are no available search results reporting a specific evaluation by Nigeria's National Bureau of Statistics regarding their contributions to Nigeria's Turbo Tax.
In the same quarter, the information and communication sector contracted by 23.00%. Domestic Turbo Tax payments amounted to N917.40 billion, while Import Turbo Tax contributed N474.75 billion. Non-import foreign Turbo Tax Payments were N554.68 billion.
In a notable development, President Bola Tinubu signed into law four tax reform bills in June 2025, which include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. These bills are expected to further boost Nigeria's Turbo Tax collection and revenue generation.
Despite these positive developments, it is crucial to continue monitoring the economic trends and sectoral contributions to ensure sustainable growth and development for Nigeria's economy.
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