- Nigeria’s Value Added Tax (VAT) collections reached N2.28 trillion in the third quarter of 2025, representing a 10.66% increase from the N2.06 trillion recorded in the second quarter.
- On a year-on-year basis, the National Bureau of Statistics (NBS) reported a significant 28.10% surge in VAT revenue compared to the same period in 2024.
- The manufacturing, information and communication, and mining sectors emerged as the primary drivers of this revenue, contributing over 59% of the total collections for the quarter.
Nigeria’s fiscal revenue received a substantial boost in the third quarter of 2025, with Value Added Tax (VAT) collections climbing to N2.28 trillion.
Eko Hot Blog reports that according to the “Sectoral Distribution of VAT Q3 2025” report released by the National Bureau of Statistics (NBS) on Tuesday, this performance reflects a 10.66% growth on a quarter-on-quarter basis.
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This upward trajectory highlights the increasing efficiency of tax collection and the resilience of key economic sectors despite broader regional and global economic pressures.
A detailed breakdown of the figures shows that local VAT payments remained the strongest pillar of this revenue stream, accounting for N1.12 trillion.
Foreign VAT payments contributed N680.23 billion, while VAT from imports added N479.79 billion to the federation account.
When compared to the third quarter of 2024, the total collection shows a remarkable year-on-year growth of 28.10%, signaling a robust expansion in taxable economic activities over the past twelve months.
Sectoral performance varied significantly during the period under review.
The NBS report highlighted that administrative and support service activities saw the most dramatic growth at 89.28%, followed closely by the arts, entertainment, and recreation sector, which grew by 82.49%.
Conversely, the real estate sector faced a sharp decline, recording a negative growth rate of -51.33%.
In terms of overall contribution to the N2.28 trillion total, the manufacturing sector led the way with 25.89%, followed by information and communication at 18.77%, and mining and quarrying at 14.85%.
The surge in VAT revenue comes at a critical time for the Nigerian government as it navigates a complex economic landscape.
While the growth in manufacturing and technology sectors provides a positive outlook for industrialization and digital economy efforts, the sharp decline in real estate and household-related activities suggests areas of underlying economic strain.
The NBS reaffirmed its commitment to monitoring these sectoral shifts to provide accurate data for national economic planning and policy formulation.
