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Mining sector leads as manufacturing records lowest contribution
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VAT increases to N1.43tr
Following the exodus of some international companies in Nigeria, the tax generated from Company Income Tax (CIT) has dropped to N984.6 billion in the first quarter of 2024.
According to data from the National Bureau of Statistics (NBS), the reduction was a 12.87 per cent drop from the N1.13 trillion the government earned from the section in the fourth quarter of 2024.
Recall that in the past one year since President Bola Ahmed Tinubu assumed office, not less than seven multinational corporations have left the country owing to unfavourable business environments caused by the unavailability of foreign exchange.
The NBS, in its report, noted that on the aggregate, local payments received were N386.49 billion, while foreign CIT payment contributed N598.13 billion in Q1 2024.
“On a quarter-on-quarter basis, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the highest growth rate with -330.42 per cent (N70.5m), followed by administrative and support service activities with 33.18 per cent (N6.7bn).”
It stated that activities of manufacturing had the lowest growth rate with -70.24 per cent (73.1bn), followed by electricity, gas, steam and air conditioning supply with 69.14 per cent (5.1bn).
It also stated that in terms of sectoral contributions, the top three largest shares in Q1, 2024 were mining and quarrying with 20.94 per cent (N80.9bn); financial and insurance activities with 18.73 per cent (N72.4bn); and information and communication with 12.56 per cent (48.5).
“Nevertheless, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.02 per cent, followed by water supply, sewerage, waste management and remediation activities with 0.07 per cent and activities of extraterritorial organisations and bodies with 0.24 per cent.
However, on a year-on-year basis, CIT collections in Q1 2024 increased by 109.93 per cent from Q1, 2023.”
FG collects N177.1bn VAT in manufacturing sector
Meanwhile, another report stated that the government earned N1.43 trillion from Value Added Tax (VAT) in Q1, 2024.
It stated that the figure had a growth rate of 19.21 per cent on a quarter-on-quarter basis from N1.20 trillion in Q4,2023.
It further stated that local payments recorded were N663.1 billion, while foreign VAT payments were N435.7 billion and import VAT contributed N332 billion in Q1, 2024.
“On a quarter-on-quarter basis, accommodation and food service activities recorded the highest growth rate with 59.15 per cent (N11.4bn), followed by the activities of administrative and support with 47.79 per cent (N9.4bn),” it stated.
On the other hand, it stated that activities of extraterritorial organisations and bodies had the lowest growth rate with –57.01 per cent (N173.4m), followed by human health and social work activities with –27.73 per cent (N1bn).
In terms of sectoral contributions, the top three largest shares in Q1, 2024 were manufacturing with 26.72 per cent (N177.1bn); information and communication with 17.42 per cent (N115.5bn); and mining and quarrying activities with 15.42 per cent (N102.2bn).
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