The Value Added Tax (VAT) performance for the fourth quarter of 2024 signals a steady expansion in Nigeria’s economic activity under the leadership of President Bola Ahmed Tinubu. According to official data, total VAT collection for Q4 2024 stood at #1.95 trillion, representing a quarter-on-quarter growth rate of 9.23 percent-up from #1.78 trillion recorded in Q3 2024.

This upward trajectory is largely attributed to the strategic economic reforms and fiscal policies implemented through the Renewed Hope Agenda, which prioritize improved revenue generation, enhanced tax compliance, and broad-based economic growth.

Breakdown of VAT Contributions

• VAT revenue was generated from three primary sources:

• Domestic VAT payments: #917.40 billion

• Non-import foreign VAT payments: #554.68 billion Import VAT: #474.75 billion

This diversified revenue mix reflects the resilience of internal economic activity and external trade, both of which have benefited from the administration’s policies on trade facilitation, digital and public finance reform.

Sectoral Performance Highlights

Sector-specific analysis shows notable growth in the following areas: Activities of extraterritorial organizations and bodies surged by 180.05 percent

Agriculture, forestry, and fishing increased by 70.83 percent Human health and social work activities rose by 46.13 percent These figures highlight the inclusiveness of President Tinubu’s economic strategy, particularly in revitalizing agriculture and healthcare-two sectors central to national development.

Sectors That Declined

Despite the overall growth, some sectors experienced declines:

• Activities of households as employers and informal services dropped by 28.97 percent

The information and communication sector declined by 23.00

percent

• These trends are being closely tracked by fiscal authorities, with ongoing initiatives to digitize the informal economy and provide targeted incentives to support lagging sectors.

Conclusion

The sustained increase in VAT revenue reflects Nigeria’s ongoing economic recovery and the rising efficiency of tax collection under President Bola Ahmed Tinubu’s stewardship. It also highlights the