Nigeria’s VAT from oil industry rose by 5.26% in one year

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Galveston, UNITED STATES: An oil refinery is pictured 22 September 2005 on Galveston Bay in Texas City, TX. Hurricane Rita threatens a large portion of the US oil and gas operations industry in the Gulf of Mexico and along the Texas coast just weeks after a devastating blow to the sector from Katrina. Oil producers and refiners were attempting to secure their facilities in the face of a storm that threatens about 27.5 percent of the industry, said Red Cavaney, president of the American Petroleum Institute. AFP PHOTO/Robert SULLIVAN (Photo credit should read ROBERT SULLIVAN/AFP/Getty Images)

03 June 2018, Naija247news, Manhattan, New York City — Nigeria earns N58.703 billion in Value Added Tax, VAT, from the petroleum industry in 2017, rising by 5.26 percent from N55.77 billion recorded in 2016.

According to data obtained from the National Bureau of Statistics, NBS, VAT earnings rose by N2.933 billion in the deep offshore, upstream, midstream and downstream segments of the petroleum industry.

Giving a breakdown of the VAT earning for 2017, the report noted that in the first and second quarters of 2017, the country earned N13.599 billion and N18.848 billion respectively, while in the third and fourth quarters of 2017, VAT earnings stood at N14.868 billion and N11.386 billion respectively.

Specifically, the country generated N6.43 billion VAT from oil marketing; N45.13 billion from oil-producing; N2.271 billion from offshore operations and N4.872 billion from petrochemicals and petroleum refineries in 2017.

In addition, VAT earnings from oil marketing in the first, second, third and fourth quarter stood at N1.67 billion, N2.032 billion, N1.307 billion and N1.425 billion respectively; while VAT earnings from oil producing activities stood at N9.926 billion, N14.94 billion, N12.09 billion and N8.17 billion in the first, second, third and fourth quarters respectively.

Furthermore, in the first, second, third and fourth quarters, VAT earnings from offshore operations stood at N508 million, N516 million, N411 million and N836 million respectively; while petrochemicals and petroleum refineries generated VAT of N1.495 billion, N1.36 billion, N1.06 billion and N956 million respectively.

Furthermore, in its analysis of VAT earnings in the first quarter of 2018, the NBS report said, “Sectoral distribution of Value Added Tax (VAT) data for the first quarter of 2018 reflected that the sum of N269.79 billion was generated as VAT in the first quarter of 2018 as against N254.10 billion generated in the fourth quarter of 2017 and N221.38 billion in first quarter 2017, representing 6.17 percent Increase Quarter-on-Quarter and 21.87 percent increase Year-on-Year.

“Other manufacturing generated the highest amount of VAT with N30.14 billion generated and closely followed by Professional Services and Commercial and Trading both generating N16.58 billion and N14.93 billion respectively while Mining generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Textile and Garment industry with N46.25 million mln, N243.44 million and N285.43 million generated respectively.

“Out of the total amount generated in Q1 2018, N121.40 billion was generated as Non-Import VAT locally while N98.40 billion was generated as Non-Import VAT for foreign. The balance of N50.00bn was generated as Nigerian Customs Service-Import VAT.”

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