Three sectors accounted for a combined 59% of the total VAT collected in the first half of 2024

Key takeaways:

  • Three sectors, Manufacturing, ICT, and Mining & Quarrying, accounted for 58.8% of total VAT revenue in the first half of 2024.
  • Manufacturing alone contributed 24.8% of VAT, making it the highest-paying sector.
  • Nigeria’s digital economy is thriving, with ICT generating 17.6% of VAT revenue, signaling the growth of telecom, data services, and digital platforms.
  • The extractive industry remains vital, with Mining & Quarrying contributing 16.4% of total VAT collection.
  • Finance & Insurance (10.2%) and Public Administration & Defence (9.7%) also made significant contributions to Nigeria’s VAT revenue.
  • Despite contributions from 21 sectors, VAT revenue is still heavily reliant on a few key industries, highlighting the need for a broader tax base.

In the first half of 2024, Nigeria’s Value-Added Tax (VAT) collection was heavily concentrated in three key sectors - Manufacturing, Information & Communication, and Mining & Quarrying. These sectors collectively contributed 58.8% of total VAT revenue, demonstrating their strong economic impact. Manufacturing alone accounted for nearly a quarter of total VAT collection (24.8%), showing its dominance in Nigeria’s tax structure.
While VAT is generated across 21 different sectors, the data reveals a sharp concentration of tax revenue in a few industries. The Manufacturing sector’s dominance reflects Nigeria’s reliance on industrial production, while ICT’s 17.6% share highlights the country’s booming digital economy. Meanwhile, the Mining & Quarrying sector’s 16.4% contribution reinforces Nigeria’s strong dependence on extractive industries.

Source:

National Bureau of Statistics (NBS)

Period:

2024
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Key Takeaways:
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