Nigeria generated a total sum of N2.9 trillion revenue from VAT & CIT of non-oil income together in 2020. This number is up by 10% in relation to the N2.6 trillion recorded in 2019.
The National Bureau of Statistics (NBS) recently published a report containing the data.
According to the report, VAT & CIT in 2019 only made 1% increase against the N2.5 trillion in 2018. However, in 2020, a 4% increase was recorded.
Non-oil income VAT & CIT in 2020
In 2020, the highest amount of VAT & CIT was from professional services with N342 billion – having generated N162. 32 billion and N180.26 billion respectively. Other manufacturing sectors followed with N254 billion.
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In a similar trend with other countries during the pandemic, the breweries generated over 20% more VAT & CIT in 2020 at N112.8 billion, than the N89 billion generated in 2019.
The VAT & CIT from mining is significant at N594.5 million with an average increase of N10 million from the N495.2 generated in 2019.
Gold prices for one soared in 2020 as a result of increased fiscal spending and monetary stimulus.
In all 29 non-oil sectors in Nigeria, 7 recorded negative growth in VAT & CIT remittance.
The increase in VAT revenue alone is significant considering the economic issues of 2020. However, the increased VAT rate from 5% to 7.5% under the Finance Act in 2020 apparently had a positive impact.
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Other non-oil sectors which contributed to the VAT & CIT data in 2020 include transport and haulage services (N89 billion), state ministries and parastatals (N108 billion), banks and financial institutions (121 billion). The unclassified generated N1.38 billion.
At N2.9 trillion, the non-oil sector is one half the total budgeted revenue of N6.6 trillion against the N4.01 trillion realised in 2020.
Crude oil prices ($50pb) are still unfavourable in 2021 which means Nigeria must maintain growth in its non-oil sectors to recover from the recession.