Nigeria’s Value-Added Tax (VAT) revenue surged to N2.28 trillion in the third quarter of 2025, increasing 28.1% compared to the same period in 2024.
This shows stronger domestic consumption and improved tax collection across the country.
As revealed in the National Bureau of Statistics report released on Tuesday, March 3, 2026, VAT collections grew 10.66% from N2.06 trillion recorded in Q2 2025.
The growth highlights resilient business activities despite wider economic pressures.
Domestic Payments Lead VAT Growth
Domestic transactions are driving the bulk of VAT revenue. Of the total N2.28 trillion, local payments contributed N1.12 trillion, foreign VAT payments brought in N680.23 billion, and import VAT added N479.79 billion.
The breakdown stresses that internal trade is more vital to the treasury than foreign inflows at the moment.
“The NBS, in its VAT Q3 2025 report released on Tuesday, said the figure increased by 10.66% from N2.06 trillion recorded in Q2 2025. According to the bureau, local payments stood at N1.12 trillion, foreign VAT payments contributed N680.23 billion, while import VAT accounted for N479.79 billion in the period under review,” the agency stated.
Sectoral Winners and Losers
Growth was uneven across sectors. Administrative and support services saw an 89.28% increase, while the arts, entertainment, and recreation sector grew by 82.49%. Human health and social work also expanded by 32.40%.
However, the real estate sector took a massive hit, posting the lowest growth among all major industries.
“On the other hand, real estate activities had the lowest growth rate with –51.33%, followed by activities of households as employers, undifferentiated goods and services-producing activities of households for own use with –36.22%; and Other service activities with –20.30%,” the bureau added.
Sectoral Analysis: The Manufacturing Sector Leads the Pack
In terms of pure volume, manufacturing is still the biggest contributor to the nation’s VAT. The sector was responsible for 25.89% of the total revenue. Information and Communication (ICT) followed at 18.77%, while Mining and Quarrying stood at 14.85%.
On the lower end, household activities and extraterritorial groups contributed very little to the overall numbers.
“In terms of sectoral contributions, the top three activities with the largest shares in Q3 2025 were Manufacturing with 25.89%; Information and communication with 18.77%; and Mining and quarrying with 14.85%,” the report indicated.
Tracking the N6.4 Trillion Nine-Month Run
The total VAT for the first nine months of 2025 has now reached N6.4 trillion. This 28.10% year-on-year increase suggests that government efforts to widen the tax net are working.
“On a year-on-year basis, the NBS said VAT collections in Q3 increased by 28.10% from N1.78 trillion recorded in Q3 2024,” the statistical agency confirmed.
Looking ahead, as the 2026 financial year progresses, attention turns to whether the manufacturing sector can maintain its leading contribution amid ongoing exchange rate volatility.
“The report indicated that household activities as employers, along with undifferentiated goods-and services-producing activities for own use, accounted for the lowest share at 0.003%,” the bureau noted.
