Nigeria’s Value Added Tax (VAT) revenue rose to N2.28trn in the third quarter of 2025, representing a 28.1 per cent increase compared with the corresponding period in 2024, according to the data released by the National Bureau of Statistics (NBS).
The statistical agency disclosed that the latest figure also reflects a 10.66 per cent increase on a quarter-on-quarter basis from the N2.06trn recorded in the second quarter of 2025, underscoring sustained growth in consumption and improved tax collection across key sectors of the economy.
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A breakdown of the report shows that local VAT payments accounted for the largest share of the total collections during the period, contributing N1.12trn. Foreign VAT payments followed with N680.23bn, while import VAT generated N479.79bn.
According to the NBS, the growth in VAT revenue highlights strong activity in several sectors of the economy, particularly those linked to services and industrial production.
“Value Added Tax (VAT) in Q3 2025 was N2.28trn, showing an increase of 10.66 per cent on a quarter-on-quarter basis from N2.06trn in Q2 2025. Local payments stood at N1.12trn, foreign VAT payments were N680.23bn, while import VAT contributed N479.79bn,” the bureau said in the report.
Sectoral analysis showed that manufacturing remained the largest contributor to VAT revenue during the quarter, accounting for 25.89 per cent of the total collections.
The information and communication sector followed with 18.77 per cent, while mining and quarrying contributed 14.85 per cent.
These three sectors collectively accounted for a significant portion of the VAT generated during the quarter, reflecting their continued importance to Nigeria’s revenue structure and economic output.
The report also highlighted notable variations in growth rates across different sectors on a quarter-on-quarter basis. Administrative and support service activities recorded the highest growth rate at 89.28 per cent, followed by arts, entertainment and recreation with 82.49 per cent, while human health and social work activities expanded by 32.40 per cent.
Conversely, some sectors recorded significant declines during the period. Real estate activities experienced the sharpest contraction with a negative growth rate of 51.33 per cent.
Activities of households as employers, including undifferentiated goods- and services-producing activities for own use, declined by 36.22 per cent, while other service activities fell by 20.30 per cent.
In terms of sectoral contributions, the NBS noted that the smallest shares came from activities of households as employers and undifferentiated goods and services-producing activities for own use, which accounted for only 0.003 per cent of the total VAT collected.
Activities of extraterritorial organisations and bodies, as well as water supply, sewerage and waste management activities, recorded shares of 0.03 per cent each.
The sustained rise in VAT revenue reflects improved tax compliance, expanding economic activity and the growing role of non-oil revenue sources in Nigeria’s fiscal framework.