Nigeria’s Value Added Tax (VAT) collections stood at N2.19 trillion in the fourth quarter of 2025, representing a 3.78% decline from the N2.28 trillion recorded in the third quarter.
Despite the quarter-on-quarter dip, the figure reflects a 12.84% year-on-year increase, demonstrating continued growth in taxable economic activities.
The data, released by the National Bureau of Statistics (NBS), highlights a resilient revenue performance, suggesting improved tax compliance and gradual expansion of the tax base over time, even as short-term fluctuations in consumption persist.
What the data is saying
The breakdown of Q4 2025 VAT collections highlights contributions from domestic, foreign, and trade-related sources.
- Local VAT payments accounted for N1.16 trillion, representing the largest share.
- Foreign VAT contributions stood at N503.13 billion.
- Import VAT generated N535.73 billion, reflecting revenue diversity across domestic and international transactions.
These figures point to continued strength in Nigeria’s tax base despite quarterly dips.
More Insights
Sectoral performance during the quarter was mixed, with some areas showing strong growth while others declined.
- Water supply, sewerage, waste management, and remediation activities posted the highest quarter-on-quarter growth at 142%.
- Real estate activities grew 62.16%, while household-related economic activities rose 54.36%.
- Conversely, administrative and support services declined by 23.33%, activities of extraterritorial organisations fell 15.66%, and agriculture, forestry, and fishing dropped 12.01%.
In terms of contribution to total VAT revenue:
- Manufacturing remained the leading sector, accounting for 25.23%.
- Information and communication contributed 18.89%.
- Mining and quarrying added 14.50%.
At the lower end, household employer activities made a negligible contribution of 0.005 percent, while extraterritorial organisations and water supply-related activities contributed just 0.02% and 0.07%, respectively.
What you should know
Nairametrics earlier reported that Nigeria’s Value Added Tax (VAT) collections increased to N2.28 trillion in the third quarter of 2025.
- According to the report, the N2.28 trillion recorded in Q3 represents a 10.66% quarter-on-quarter increase from the N2.06 trillion posted in the second quarter of 2025.
- In terms of sectoral contributions, Manufacturing maintained its position as the largest contributor to VAT revenue in Q3 2025. The data also aligns with earlier trends observed in previous quarters.
- In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to simplify compliance and provide a clearer pathway into the formal economy.
In June 2025, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework.
The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
