Products Tax in Nigeria Rises by 112 percent – NBS

Total taxes on products in the Nigerian economy rose by 112.02 percent from N1.43 trillion in 2019, to N3.03trillion in 2022, coinciding with a Value Added Tax hike from five percent in 2020 to 7.5 percent in 2022.

This was revealed in the National Bureau of Statistics’ ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach)’ for the years under review.

The NBS defines net taxes on products as the “total taxes payable on products, minus any subsidies received for the product.”

Prior to the implementation of the new VAT regime, net taxes on products totalled N1.43tn in 2019.

By 2020 (when the new VAT regime began), taxes rose by 34.97 percent to 1.93tn in 2020.

It further rose by another 32.13 percent to N2.55tn in 2021 and rose by 18.88 percent to N3.03tn in 2022.

Commenting on the growth of net taxes on products, the NBS said, “on a year-on-year basis, Net Taxes on Products grew in real terms by 10.30 percent in Q3 of 2022, and 11.18 percent in Q4 of 2022 compared to 6.22 percent and 67.99 percent in Q3, and Q4 of 2021.”

It added: “On an annual basis, 2022 grew by 14.19 per cent, lower than 25.81 per cent in 2021. In nominal terms, the growth rate of Net Taxes on Products was 24.95 per cent in Q3 of 2022, and 23.71 per cent in Q4 of 2022.”

NBS/Punch/Hauwa Abu