VAT revenue rises 34% in 9 months

Nigeria’s revenue from Value Added Tax (VAT) and Company Income Tax (CIT) recorded strong growth in the first nine months of 2025, reflecting improved non-oil revenue performance and enhanced fiscal capacity.

Data from the National Bureau of Statistics (NBS) showed that VAT collections rose year-on-year (YoY) by 34 percent to N6.4 trillion in 9M’25 from N4.77 trillion in the corresponding period of 2024.

Quarterly analysis indicated mixed but improving momentum. VAT declined marginally by 1.4 percent to N2.03 trillion in Q2’25 from N2.06 trillion in Q1’25. However, collections rebounded in Q3’25, rising by 10.66 percent quarter-on-quarter (QoQ) to N2.28 trillion. On a YoY basis, VAT in Q3’25 grew by 28.1 percent.

In Q3’25, local VAT payments accounted for N1.12 trillion, foreign VAT payments contributed N680.23 billion, while import VAT stood at N479.79 billion.

Sectoral data showed that Administrative and Support Services recorded the highest QoQ growth at 89.28 percent, followed by Arts, Entertainment and Recreation (82.49 percent), and Human Health and Social Work (32.4 percent). Real Estate posted the sharpest decline at –51.33 percent. Manufacturing led sectoral contributions with 25.89 percent, followed by Information and Communication (18.77 percent) and Mining and Quarrying (14.85 percent).