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Daniel Adaji
Nigeria’s Ministries, Departments, and Agencies (MDAs) collectively remitted N24.17bn in taxes to the Federal Inland Revenue Service (FIRS) in December 2024. official data obtained and analysed by Pointblanknews.com on Tuesday has shown.
The remittances, which include Value Added Tax (VAT) and Withholding Tax (WHT), were deducted from procurement contracts and service payments by various federal agencies.
Leading the contributions was the Federal Ministry of Works, which remitted over N1.74bn in VAT and N581.46m in WHT on infrastructure contracts, including payments to contractors such as Epsilon Global Engineering Ltd., Medaville Construction, and Visible Construction Ltd.
The Federal Road Maintenance Agency (FERMA) followed with a payment of N716.66m in VAT related to road works carried out by Mothercat Ltd., reflecting the volume of capital projects under execution.
At the Ministry of Defence Headquarters, over N413.7m was paid in both VAT and WHT for contracts involving firms such as Securepoint Integrated Services, underscoring the defence sector’s compliance with tax obligations.
The Federal Ministry of Agriculture and Food Security also contributed hundreds of millions of naira through multiple WHT deductions, with individual payments exceeding N30m. This reflects ongoing procurement for agricultural inputs, equipment, and services.
In the healthcare sector, the University of Port Harcourt Teaching Hospital remitted more than N253.9m from medical equipment purchases and service contracts, while the National Drug Law Enforcement Agency (NDLEA) paid over N238m from enforcement equipment and logistics contracts.
The National Primary Health Care Development Agency (NPHCDA) also made a notable remittance of N211m, tied to pharmaceutical procurement and immunisation programme logistics.
Smaller agencies showed similar compliance. The Federal College of Animal Health and Production Technology, Ibadan, for example, paid N11.6m in VAT and WHT for facility maintenance and supply contracts—demonstrating that the tax net is reaching agencies of all sizes.
These payments are governed by Nigeria’s public finance regulations, which require MDAs to deduct and remit statutory taxes on eligible transactions. VAT, charged at 7.5%, applies to goods and services consumed locally, while WHT—typically at 5% or 10%—is deducted at the point of payment to contractors and service providers.
FIRS, through enhanced digital tracking, enforcement strategies, and inter-agency collaboration, continues to strengthen the government’s non-oil revenue base.
The December figures reflect improved tax culture and adherence among MDAs, with revenue from statutory deductions providing essential funding for infrastructure, healthcare, defence, and other public services. FIRS is expected to maintain this momentum, reinforcing accountability and supporting national growth goals.