Ministries, Departments, and Agencies of the Federal Government remitted a total of N7.04bn in Value Added Tax to the Federal Inland Revenue Service in October and November 2024.
This is according to data sourced from BudgIT’s accountability platform – GovSpend, by our correspondent on Monday.
The breakdown of this amount showed N4.13bn in October and N2.91bn in November, with no payments recorded in December yet.
The total amount for the quarter was N7,038,301,823.65, highlighting the continued role of VAT in Nigeria’s revenue generation.
According to the Federal Inland Revenue Service, VAT in Nigeria is charged at a rate of 7.5 per cent on goods and services, with certain exceptions like non-oil exports being zero-rated.
“Value Added Tax is a consumption tax paid when goods are purchased and services rendered. It is a multi-stage tax and VAT is borne by the final consumer,” stated FIRS.
The agency also emphasised the obligation of certain taxpayers to remit VAT, including Nigerian companies dealing with non-resident companies, government agencies, and firms in the oil and gas sector.
Payments made in October and November included remittances from the Federal Ministry of Works, which contributed millions in VAT on contracts for construction companies.
Notable payments in October included N24.98m for Ultrateam Projects Design & Construction Ltd. and N18.79m for Bkem Consults Ltd.
Similarly, November payments included N97.73m from Gillan Construction Ltd. and N46.67m from Centrebeam Construction Ltd.
FIRS Chairman Zacch Adedeji in 2024 emphasised the agency’s ongoing efforts to improve tax collection, especially by widening the scope of VAT collection to include non-resident suppliers like Google and Amazon.
“What we are doing at the FIRS is to look at issues of policy. We now collect tax from non-resident resource suppliers like Google, and Amazon,” he said.
The FIRS has also collaborated with the United Nations Development Programme to analyse and close VAT gaps, with a target of generating N5tn from VAT by the end of 2024.
Meanwhile, the Nigerian government continues to push for tax reforms aimed at expanding the tax base and improving compliance.
A former Attorney-General and Senior Advocate of Nigeria, Mohammed Adoke, highlighted the importance of taxation, stating, “Taxation is an indispensable tool for governments worldwide to raise revenue and promote economic development.”
He further noted the challenges faced by Nigeria’s tax system, citing low voluntary compliance and inefficiencies in administration.
The government has proposed several reforms, including the Revenue Reform Bills 2024, aimed at improving the country’s tax system and ensuring sustainable revenue for development.
