THE SECTORS NOW BOOMING IN NIGERIA

Do you know that you can have an idea of the sectors now booming in Nigeria as indicated by consumption tax revenue generated in the form of value added tax?

Oh sure, the Federal Government maintains that some companies are remitting less than they collect or do not remit to schedule. That does subtract too much from deductions reached by studying VAT generation.

Today, the National Bureau of Statistics in its Quarter three report, said that N706.6bn was collected as VAT in Nigeria in the nine months to September, up 23.06%.

Top growth was recorded in what the NBS called Pioneering sector as VAT generated here rose by 283.21% to N3.932bn. No other sector had that kind of growth.

What is more, in Q3 2017 alone, VAT generated here grew by 179.50% to N1.707bn on Q3 2016 levels. Something must definitely be happening there.

Apart from this, other top five growths in VAT generated to September were Publishing, Printing and Paper Packaging's 57.1% to N2.015bn although its quarter 3 growth was very marginal; 41.05% to N8.033bn recorded by Building and Construction with Q3 year on year of 72.12%; Automobiles and assemblies' 40.83% growth to N1.372bn with 22.05% increase in Q3 and the Gas sector's 4.36% growth in VAT generated to N4.109bn as Q3 chipped in 28.06% growth year on year.

The only other sector with VAT generation to September growth rate above the 23.06% in total generated was the Conglomerates which recorded 25.85% increase to N3.9bn.

These then are the sectors affected by VAT now booming in the economy. However, they are yet to contribute the most to VAT revenue.

Top contributor to September was the Other Manufacturing sector which generated N91.4bn while growing by 21.85% when compared to same time in 2016 but in Q3 alone grew by 19.32% year on year.

Traing it was Professional services with N65.2bn VAT revenue generated to September 2017, up by only 4.74%; followed by Oil Producing sector with N36.957bn, up 17.41%; Commercial and Trading with N36.628bn, down 2.59%; Breweries, and Bottling and Beverages with N27.017bn up 17.53%.

In Q3 alone in 2017, N250.5bn was generated, up 27.39% on Q3 2016 and 1.73% on Q2 2017.

Hence the chart of booming sectors changes slightly if focus is on Q3 2017 alone. 

Pioneering continues to pace growth here but it was trailed by Building and Construction with 72.12% and Conglomerates with 38.16% growth.

Based on quarter to quarter, however, Building and Construction takes over the lead with 54.78% followed by Conglomerates with 46.67% and Pioneering with 37.08%.

Of course, study the reverse too. The sectors with top drops in VAT generation to September 2016 were Local Government Councils, down 47.64% to N438.97m; Pharmaceuticals and Toiletries down 36.3% to N660.17m and Federal Ministries and Parasatals with 29.9% decline to N16.996bn.

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