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Local, Foreign Companies Remit N588.59bn into FG Account as VAT Payments in Three Months
Economy

Local, Foreign Companies Remit N588.59bn into FG Account as VAT Payments in Three Months

by  Dave Ibemere 2 min read
  • The federal government has announced it recorded an increased VAT payment from local and foreign companies
  • The new figures will come as a welcome boost to the FG as it continues to battle with dwindling oil revenue
  • A total of N588.59bn was paid to the federal government which is led by Manufacturing companies

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Nigerian and foreign companies have remitted a total of N588.59 billion from Value Added Tax (VAT) in the first three months of this year.

This is 18.58 per cent increase when compared to N496.3 billion VAT collected by the federal government in the same period in 2021.

The National Bureau of Statistics (NBS) disclosed these details on Friday in its latest VAT report.

Nigeria VAT payment on the rise
The increased VAT will come as a welcome boost for Nigeria as it battles with low oil revenue Credit: Presidency
Source: UGC

The report also showed that VAT increased by 4.41 per cent quarter-on-quarter from N563.72 billion in the fourth quarter of 2021.

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Value-added tax (VAT) is a type of indirect tax levied on goods and services for value-added at every point of the production or distribution cycle, starting from raw materials and going all the way to the final retail purchase.

How the payments were made

On the breakdown, NBS noted that Local companies’ payments recorded were N344.04 billion in Q1 2022, while foreign companies' VAT payments stood at N117.99 billion, BusinessDay reports.

Part of NBS reads:

“In terms of sectoral contributions, the top three largest shares in Q1 2022 were manufacturing with 32.84 percent, information and communication with 17.10 percent, and mining and quarrying with 11.85 percent,”

Manufacturing companies paid N112.9 billion followed by Information and communication companies N58.84 billion while Mining and quarrying sector paid N40.78 billion.

Other top VAT paying sectors in Q1, 2022

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  • Financial and insurance activities- N29.27 billion
  • Public administration and defence, compulsory social security- N25bn
  • Other service activities- N18.12bn
  • Wholesale and retail trade, repair of motor vehicles and motorcycles- N14.31bn
  • Transportation and storage- N13.57bn

Dangote, Rabiu companies dominate the list of most valuable manufacturing companies

Legit.ng had earlier reported that Dangote cement and BUA cement are the two most valuable listed manufacturing companies in Nigeria.

BUA foods another company owned by Abdulsamad sat in the third position while Nestle Nigeria completed the list of top four valuable manufacturing companies.

The ranking of the banks is according to data from the Nigerian Exchange Group (NGX) and compiled by Legit.ng

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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