Nigeria generated ₦2.28 trillion in Value Added Tax (VAT) revenue in the third quarter of 2025, according to the National Bureau of Statistics (NBS).
In its latest report, the agency stated that the Q3 figure represents a 10.66 percent increase on a quarter-on-quarter basis from the ₦2.06 trillion recorded in Q2 2025. On a year-on-year basis, VAT collections grew by 28.10 percent compared to the corresponding period in 2024, reflecting sustained improvement in revenue performance.
VAT Revenue Breakdown
A detailed analysis of the Q3 2025 figures shows that:
- Local VAT payments accounted for ₦1.12 trillion
- Foreign VAT payments contributed ₦680.23 billion
- Import VAT generated ₦479.79 billion
The data highlights the continued dominance of domestic economic activities in driving VAT collections.
Sectoral Growth Trends
On a quarter-on-quarter basis, administrative and support service activities recorded the highest growth rate at 89.28 percent. This was followed by arts, entertainment and recreation at 82.49 percent, and human health and social work activities at 32.40 percent.
In contrast, real estate activities posted the sharpest decline at –51.33 percent. Activities of households as employers and undifferentiated goods- and services-producing activities for own use declined by –36.22 percent, while other service activities fell by –20.30 percent.
Sectoral Contributions
Manufacturing emerged as the largest contributor to VAT revenue in Q3 2025, accounting for 25.89 percent of total collections. Information and communication followed with 18.77 percent, while mining and quarrying contributed 14.85 percent.
At the lower end, activities of households as employers recorded the smallest share at 0.003 percent. Activities of extraterritorial organisations and bodies, alongside water supply, sewerage and waste management, each accounted for just 0.03 percent.
The Q3 performance underscores continued expansion in Nigeria’s tax revenue base, driven largely by manufacturing, ICT, and extractive sectors, despite contraction in selected service-related segments.
