VAT revenue drops by N36.82bn in Q3

the total revenues from Value Added Tax (VAT) dropped by N36.8 billion to N275.12 billion in the third quarter of the year compared to N311.94 billion in the preceding quarter,  the National Bureau of Statistics (NBS) has revealed.

The NBS, in its sectoral distribution of VAT data for Q3 added that the figure represented a contraction of 11.81 per cent on a quarter-on-quarter analysis and 0.59 per cent increase (year-on-year).

According to the report, professional services generated the highest amount of VAT of N32.09 billion, closely followed by manufacturing with N30.27 billion.

VAT from commercial and trading totalled N14.47 billion while mining generated the least and closely followed by textile and garment industry and pharmaceutical, soaps and toiletries with N44.30 million, N253.83 million and N291.06 million, respectively.

The statistical agency explained that out of the total amount generated in Q3, N150.74 billion was generated as non-import VAT locally while N63 billion was realised as non-import VAT for foreign.

It stated that the balance of N61.37 billion was generated as NCS-Import VAT.

The Nigerian government is currently faced with huge revenue challenges.

President Muhammadu Buhari had sought to raise VAT rate from five per cent to 7.5 per cent amidst other fiscal adjustments to boost tax receipts.

Earlier in October, he presented the Finance Bill, alongside the 2020 Appropriation Bill to a joint session of the National Assembly for consideration and passage into law.

The bill, which was passed by the Senate last month, comprises seven bills, seeking to amend six tax provisions and make them more responsive to tax reform policies.

Although the move to raise the VAT by the federal government has been opposed by a section of Nigerians, the country’s VAT rate remained one of the lowest in the world.

Another 4.5m Nigerians unemployed in 2018 – World Bank

The World Bank has said that another 4.5 million Nigerians joined the labour force in 2018, as the institution laments that the unemployment rate in Nigeria continues to remain a challenge.

The World Bank has said that only 450,000 of the total number of recent Nigerians who joined the labour force are currently employed.

A recent report released by the bank’s Nigeria Economic Update (NEU) in Abuja on Monday shows that the country with population growth (estimated at 2.6 per cent) outpacing economic growth, per capita incomes are falling.

The international bank in its report said that while Nigeria’s economy is gradually recovering from the 2016 economic recession, a growth projection of 1.9 per cent to 2 per cent is expected between 2018 and 2019.

it also stated that the expected growth is vulnerable to external and domestic risks including geopolitical and trade tensions that may affect inflows of private investment.

]It was previously reported that the Minister of Labour and Productivity, Dr. Chris Ngige, said that Nigeria’s unemployment rate would reach 33.5 per cent by 2020.