SECTORAL CONTRIBUTIONS TO VAT REVENUE IN NIGERIA: A COMPARATIVE ANALYSIS OF KEY ECONOMIC DRIVERS (2022–2023)
Usman Salamatu Aliyu, Micah Ezekiel Elton Mike, Omole Paul Martins and Anthony Kolade Adesugba
Volume 11 Issue 1
Abstract
This study analyzes the sectoral contributions to Value Added Tax (VAT) in Nigeria from Q1 2022 to Q2 2023, focusing on identifying trends, growth consistency, and sectoral performance. Using sectoral VAT data, the study explores the impact of different sectors on overall VAT revenue and highlights key contributors such as Manufacturing, Information and Communication, and Wholesale and Retail Trade. The research reveals fluctuations in some sectors, such as Construction and Transportation, indicating sensitivity to economic cycles. Additionally, sectors like Water Supply show consistently low VAT contributions, suggesting challenges in compliance and sector-specific issues. The study further investigates the growth consistency index and sectoral share analysis, providing insights into the stability of VAT revenue streams across various sectors. The findings offer several policy recommendations, including improving tax compliance, supporting high-performing sectors, and diversifying the tax base. The paper also suggests areas for further research, such as the impact of VAT on consumer behavior and the integration of digital economy activities into VAT collection. These findings are crucial for optimizing VAT collection in Nigeria, with implications for fiscal policy and long-term economic stability. Keywords: VAT, Sectoral Analysis, Nigeria, Tax Compliance, Economic Policy, Revenue Growth
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