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· Nigeria mobilized N2.94 trillion in income from value-added tax (VAT) and company income tax (CIT) last year (2020), according to country’s the National Bureau of Statistics (NBS)
· This is close to 10 per cent higher than the N2.68 billion recorded in 2019
· VAT accounted for N1.53 trillion or 52 per cent was the total figure
Nigeria mobilized N2.94 trillion in income from value-added tax (VAT) and company income tax (CIT) last year (2020), according to the country’s National Bureau of Statistics (NBS). This is close to 10 per cent higher than the N2.68 billion recorded in 2019.
The third quarter (Q3) recorded the largest performance with a total of N840.7 billion as against N620 billion recorded in Q1.
VAT accounted for N1.53 trillion or 52 per cent was the total figure, N1.41 trillion was sourced from CIT. The CIT income is 13.5 percent short of the N1.63 trillion generated from the same source in 2019, which was the lowest number. The breakdown of 2020 CIT income was that: local companies (N750.5 billion), foreign CIT payment (N380.8 billion), and others (N238.1 billion).
Professional services (including telecoms) generated N180.3 billion and banks/other financial institutions contributed N96.4 billion. Contributions of banks and other financial institutions to the CIT fell by about 48 per cent (compared to N142.7 billion realized from the sector in 2019). Resources mobilized from professional service rose from N177.7 billion in 2019 to N180.3 billion.
Manufacturing contributed to the kitty at (N80.2 billion), commerce and trading (N65.6 billion), breweries, bottling and beverages (N53.2 billion), state ministries and parastatals (N49 billion), transport and haulage (N45.5 billion), oil-producing (N40.8 billion) and federal ministries and parastatals (N22.5 billion).
However resources generated from sectors like textile and garment industry at (N360 million) showed a lackadaisical growth so also mining (N343.2 million), local government councils (N1.1 billion), chemicals, paints and allied industries (N2 billion) and publishing, printing and packaging (N2.1 billion).
In the fourth quarter, the country generated N454.7 billion from VAT displaying a stellar performance in the quarter as against the first quarter’s poor performance at 324.6 billion. The pattern was different from that of 2019, when the Q2 topped the year followed by the fourth and then first. It may be noted that VAT was increased from five per cent to 7.5 per cent as contained in the Finance Act 2019 and the increase took effect on February 1, 2020.
