The federal ministries, directorates, and agencies have remitted more than N7 billion Value Added Tax (VAT) to the Federal Inland Revenue Service (FIRS) in two months.

Data collected from GovSpend indicates that the amount was collected between October and November 2024.

The MDAs remitted N4.13 billion as VAT in October and N2.91 billion in November 2024.

As at Monday, January 13, 2025, the data for December 2024 was not yet available.

This shows that MDAs generated and remitted VAT of N7.04 billion from the third quarter, exclusive December 2024.

Data from BudgIT’s platform, GovSpend, further states that the Federal Ministry of Works remitted a significant portion of this VAT from contracts for construction companies.

There is N24.98 million VAT remitted for Ultrateam Projects Design & Construction Ltd. and N18.79 million for Bkem Consults Ltd in October 2024.

In November, N97.73 million was remitted as VAT for Gillan Construction Ltd. and N46.67 million for Centrebeam Construction Ltd.

In recent years, the FIRS has focused on widening the tax net and enforcing compliance. VAT is now also collected from oil and gas firms, government agencies, and non-resident companies like Google and Amazon.

The agency is also in several collaborations to close the VAT gap and had set a VAT target of N5 trillion in 2024.

Ongoing VAT reforms VAT Collection is a major part of revenue generation in Nigeria, and the Revenue Reform Bills 2024 has several proposals to reform VAT collection in Nigeria.

The FIRS currently receives a VAT rate of 7.5% charged on goods and services sold within Nigeria, except zero-rated categories. It is a consumption tax often passed down in price to the final consumer.

The proposed Tax reforms will double the VAT rate to 15%, in staggered phases of 10%, 12.5% before hitting 15% by 2030.