The Federal Inland Revenue Service (FIRS) has released data showing that Nigeria generated a total of N444.19 billion in Value Added Tax (VAT) across its states and the Federal Capital Territory (FCT) for August 2024.
- VAT is a consumption tax imposed on goods and services at each stage of production or distribution, paid by consumers but collected by businesses and remitted to the government.
- The FIRS is responsible for overseeing VAT collection in Nigeria, ensuring compliance and generating essential revenue for national development.
- VAT is charged on taxable goods and services at a standard rate of 7.5%, collected by businesses from consumers at the point of sale and remitted to the FIRS on a monthly basis.
- The revenue generated from VAT is subsequently shared among the federal, state, and local governments.
