The Federal government generated N1.49 trillion as the aggregate revenue from value-added tax (VAT) in the first half of 2023.
According to data from the National Bureau of Statistics (NBS), released on Monday, the amount represents a 25 per cent increase compared to the N1.18 trillion recorded in the first half (H1) of 2022.
VAT, which is a consumption tax, is being administered by the Federal Inland Revenue Service (FIRS).
Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).
The report further showed that VAT collection in Nigeria grew by 10.11 percent to N781.35 billion in Q2 of 2023, from N709.59 billion in Q1.
A breakdown of the figure shows that local payments recorded N948.13 billion, while foreign VAT payments contributed N293.76 billion, and N249.06 billion came from import VAT in the first six months of the year.
In the review period, the manufacturing sector recorded the highest revenue of N281.1 billion — a 25 per cent growth when compared to the first six months (H1) of 2022, followed by the information and communication sector with N192.59 billion in revenue — a growth of 52 per cent when compared to H1 of 2022.
Other sectors are; mining and quarrying (N107.19 billion), financial and insurance activities (N92.67 billion) and public administration and defence (N70.98 billion).
