The 2024 appropriation bill estimates the generation of ₦593.1 billion from Value Added Tax (VAT) in 2024.
According to the federation revenue section of the document, the Nigerian government estimates a total revenue ₦12.7 trillion in the coming year, and while of this amount, the major pool of federation revenue stands at ₦12.1 trillion, the revenue projection from VAT is around ₦593.1 billion.
Back in February 2020, the federal raised the VAT rate from 5% to 7.5%.
Last year, the Nigerian government generated N2.51 trillion from VAT showing a 21.2% rise from the ₦2.17 trillion generated in 2021.
Nigeria Aims to Double Tax Collection by 2024 Amid Economic Challenges
Nigeria to Generate ₦593 Billion
From the ₦2.51 trillion, the government generated ₦375 billion which is the statutory 15% appropriated for the federal government from VAT collection.
Thanks to the increase in the VAT rate from 5% to 7.5% in 2020, Nigeria has in recent years seen significant growth in VAT revenue.
Ever since the review, the amount generated from VAT has doubled, attaining a record high of ₦2.51 trillion in 2022.
Coming down to 2023, according to the information obtained from the National Bureau of Statistics (NBS), the country generated around ₦1.49 trillion from VAT in the first half of the year.
In the second half of the year, VAT collection rose by 10% when compared to the amount generated in the previous quarter.
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