Nigeria’s mining and quarrying sector remitted a total of N686.96 billion in Value Added Tax (VAT) in 2025.
This is according to data released by the National Bureau of Statistics (NBS).
The figure represents a notable increase from the N556.19 billion recorded in 2024, reflecting improved tax compliance and revenue mobilisation within the sector.
The latest data highlights growing fiscal contributions from a sector that has historically underperformed in Nigeria’s economy.
Despite the improvement, the sector continues to face structural challenges that limit its overall economic impact.
What the data is saying
NBS data shows that VAT contributions from the mining sector remained relatively stable throughout 2025.
- The sector generated N187.59 billion in Q1, representing the highest quarterly contribution.
- VAT collections declined to N164.70 billion in Q2.
- Contributions stood at N166.77 billion in Q3.
- The sector recorded N167.90 billion in Q4, indicating consistent performance in the latter half of the year.
The steady quarterly trend demonstrates stable revenue inflows despite broader economic pressures.
Get up to speed
Nigeria’s mining sector has long struggled to realise its full potential despite abundant mineral resources.
- The sector contributes less than five per cent to Nigeria’s Gross Domestic Product (GDP).
- Illegal mining activities have significantly reduced government revenue.
- Weak incentives, poor infrastructure, and policy gaps have discouraged large-scale investments.
These challenges have limited the sector’s contribution to both economic growth and government revenue.
Recent fiscal reforms have played a key role in improving revenue collection in the mining sector.
- In June 2025, President Bola Ahmed Tinubu signed four major tax reform laws to modernise Nigeria’s tax system.
- The reforms include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill.
- A key policy shift transferred the collection of mineral royalties to the Nigeria Revenue Service (NRS) to improve accountability.
- The Federal Government also generated N6.96 billion in mining fees in Q1 2025, indicating improved compliance.
These measures are aimed at reducing leakages and strengthening revenue administration across the sector.
What you should know
Earlier, Nairametrics reported that Nigeria’s mining and quarrying sector contributed a total of N723.33 billion in Company Income Tax (CIT) in 2025.
The figure represents a significant increase from the N520.34 billion recorded in 2024.
Nairametrics also reported that Nigeria’s 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.
Nairametrics also 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.
