₦airaland Forum

The Federal Inland Revenue Service (FIRS) has reported a substantial rise in Nigeria’s Value Added Tax (VAT) collections, which reached N6.72 trillion in 2024, reflecting a 84.62% year-on-year (YoY) increase compared to N3.64 trillion recorded the previous year.

This was disclosed at the 2025 FIRS Management Retreat on Thursday, where the agency reviewed its revenue performance.

According to the data presented by Amina Ado, Coordinating Director, Large Taxpayers Group, VAT collections in 2024 demonstrated remarkable growth across both import and non-import categories.

Surge in tax revenue across categories

The latest figures indicate that all tax categories recorded significant growth in 2024 compared to 2023, with non-oil taxes driving the majority of the increase.

Non-import VAT, which stood at N2.93 trillion in 2023, rose by 75.09% to N5.13 trillion in 2024.
Similarly, import VAT more than doubled, increasing from N715 billion to N1.59 trillion, representing a 122.38% growth.
Company Income Tax (CIT) also recorded a 102.5% rise, climbing from N3.35 trillion in 2023 to N6.78 trillion in 2024.
Meanwhile, the Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT segment saw a 35.2% growth, increasing from N4.26 trillion to N5.76 trillion.
Education Tax (EDT) posted the highest YoY percentage growth, surging by 127.8%, from N719 billion in 2023 to N1.64 trillion in 2024.
The overall non-oil tax revenue increased by 97% compared to 2023, reflecting the federal government’s intensified efforts to broaden the country’s tax base and reduce reliance on oil revenues.

Oil revenue falls below target despite growth

Despite growth across all tax categories, oil-related tax revenue did not meet FIRS’ internal projections. The PPT/HT/CIT Upstream tax, which was expected to generate N7 trillion, fell short at N5.76 trillion, achieving only 82.3% of its target.

The shortfall was attributed to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.

However, improved debt collection efforts helped offset some of the revenue losses in this segment.

VAT and CIT exceed projections
While oil-related revenue underperformed, VAT collections surpassed internal projections. Import VAT, initially targeted at N1.1 trillion, significantly outperformed expectations, achieving 144.3% of its target with a final revenue of N1.59 trillion.
Non-Import VAT also exceeded expectations, surpassing its target by 20.7%, reaching N5.13 trillion instead of the projected N4.25 trillion.
CIT collections followed a similar trend, outperforming projections. The tax, which was expected to generate N5.7 trillion, closed the year at N6.78 trillion, achieving 118.9% of its target.
What you should know
The FIRS plans to generate N25.2 trillion from taxes in 2025. This new target followed the N21.6 trillion revenue that the Service generated in 2024, significantly exceeding the year’s target of N19.4 trillion.

There have been debates recently over the new sharing formula for VAT revenue as proposed in the new tax reform bills currently before the National Assembly.

The new tax bills under consideration propose adopting a derivation principle in the allocation of VAT revenues between the federal government and sub-national entities.
Under the current Section 40 of the VAT Act, VAT revenue is allocated as follows: 15% to the Federal Government, 50% to the States and Federal Capital Territory (FCT), and 35% to Local Governments.
The allocation to states and local governments incorporates a derivation principle of at least 20%. Although not explicitly detailed in the VAT Act, other factors influencing distribution include 50% based on equality and 30% based on population.
Additionally, 4% of collections are allocated to the Federal Inland Revenue Service (FIRS) as a collection fee, while 2% goes to the Nigeria Customs Service (NCS) for import VAT.
However, the Nigeria Governors’ Forum (NGF) endorsed a revised Value Added Tax (VAT) sharing formula, which it believes will ensure equitable distribution of Nigeria’s resources.
The NGF endorsed a revised VAT-sharing formula aimed at the equitable distribution of resources, which is based on 50% based on equality, 30% based on derivation, and 20% based on population.
Members also agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time.

https://nairametrics.com/2025/01/31/nigerias-vat-revenue-hits-n6-72-trillion-in-2024-surges-by-84-62/

Good

Ahead ahead Nigeria

Nairalanda1 when will you provide evidence that Tinubu administration is borrowing to pay salary?

Paraman:
Nairalanda1 when will you provide evidence that Tinubu administration is borrowing to pay salary?

helinues:
Good

Ahead ahead Nigeria

If someone asks two of you to summarise this topic now,wahala 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

Greenback:
If someone asks two of you to summarise this topic now,wahala 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

Do the bitterness alone. It's not a must to join you.

We are happy that Nigeria is progressing under president Tinubu

Greenback:
If someone asks two of you to summarise this topic now,wahala 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

You mean even after reading that well detailed report, you still believe some people would struggle to comprehend these data?

Change your circle,bro

That you even think this is a big deal says alot about you

Naira lost over 200% in value VAT grew by 84% and some people want us to believe it's progress

Government of taxes.

Tax the people to fund your luxurious lifestyles.

Employ a few to sing your praises by paying them peanuts.

EmperorCaesar:
You mean even after reading that well detailed report, you still believe some people would struggle to comprehend these data?

Change your circle,bro

That you even think this is a big deal says alot about you

Spare me ur saliva,thank you very much

Can this propaganda explain how Tinubu moved Nigeria debt from 87trillion to 140 trillion in less than 2yrs?

yoruboid:
The Federal Inland Revenue Service (FIRS) has reported a substantial rise in Nigeria’s Value Added Tax (VAT) collections, which reached N6.72 trillion in 2024, reflecting a 84.62% year-on-year (YoY) increase compared to N3.64 trillion recorded the previous year.

This was disclosed at the 2025 FIRS Management Retreat on Thursday, where the agency reviewed its revenue performance.

According to the data presented by Amina Ado, Coordinating Director, Large Taxpayers Group, VAT collections in 2024 demonstrated remarkable growth across both import and non-import categories.

Surge in tax revenue across categories

The latest figures indicate that all tax categories recorded significant growth in 2024 compared to 2023, with non-oil taxes driving the majority of the increase.

Non-import VAT, which stood at N2.93 trillion in 2023, rose by 75.09% to N5.13 trillion in 2024.
Similarly, import VAT more than doubled, increasing from N715 billion to N1.59 trillion, representing a 122.38% growth.
Company Income Tax (CIT) also recorded a 102.5% rise, climbing from N3.35 trillion in 2023 to N6.78 trillion in 2024.
Meanwhile, the Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT segment saw a 35.2% growth, increasing from N4.26 trillion to N5.76 trillion.
Education Tax (EDT) posted the highest YoY percentage growth, surging by 127.8%, from N719 billion in 2023 to N1.64 trillion in 2024.
The overall non-oil tax revenue increased by 97% compared to 2023, reflecting the federal government’s intensified efforts to broaden the country’s tax base and reduce reliance on oil revenues.

Oil revenue falls below target despite growth

Despite growth across all tax categories, oil-related tax revenue did not meet FIRS’ internal projections. The PPT/HT/CIT Upstream tax, which was expected to generate N7 trillion, fell short at N5.76 trillion, achieving only 82.3% of its target.

The shortfall was attributed to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.

However, improved debt collection efforts helped offset some of the revenue losses in this segment.

VAT and CIT exceed projections
While oil-related revenue underperformed, VAT collections surpassed internal projections. Import VAT, initially targeted at N1.1 trillion, significantly outperformed expectations, achieving 144.3% of its target with a final revenue of N1.59 trillion.
Non-Import VAT also exceeded expectations, surpassing its target by 20.7%, reaching N5.13 trillion instead of the projected N4.25 trillion.
CIT collections followed a similar trend, outperforming projections. The tax, which was expected to generate N5.7 trillion, closed the year at N6.78 trillion, achieving 118.9% of its target.
What you should know
The FIRS plans to generate N25.2 trillion from taxes in 2025. This new target followed the N21.6 trillion revenue that the Service generated in 2024, significantly exceeding the year’s target of N19.4 trillion.

There have been debates recently over the new sharing formula for VAT revenue as proposed in the new tax reform bills currently before the National Assembly.

The new tax bills under consideration propose adopting a derivation principle in the allocation of VAT revenues between the federal government and sub-national entities.
Under the current Section 40 of the VAT Act, VAT revenue is allocated as follows: 15% to the Federal Government, 50% to the States and Federal Capital Territory (FCT), and 35% to Local

How come Nigeria debt is almost doubling under Tinubu in less than 2yrs?

helinues:
Do the bitterness alone. It's not a must to join you.

We are happy that Nigeria is progressing under president Tinubu

What is the point paying VAT if it ends up being used for mosques, ramadan, and hajj, or even useless inflated projects?

You are rejoicing over increment in revenues without commensurate improvements on citizens. Imagine customs declaring humongous income, while clearing of goods beyond many now.

iwaeda:
You are rejoicing over increment in revenues without commensurate improvements on citizens. Imagine customs declaring humongous income, while clearing of goods beyond many now.

Companies are also posting profits so where do you sit