The Nigerian government’s revenue from Value Added Tax (VAT) remained stable at ₦2.06 trillion in the second quarter of 2025, according to a report by the National Bureau of Statistics (NBS). The report, which focuses on the sectorial distribution of VAT, indicates a minimal decrease of 0.03% on a quarter-on-quarter basis compared to the first quarter of 2025.
Breaking down the VAT payments, local payments accounted for ₦1.09 trillion, while foreign VAT payments and import VATcontributed ₦459.95 billion and ₦508.55 billion, respectively. The sector that recorded the highest growth rate in VAT payments was real estate activities, with a 155.21% increase, followed by agriculture, forestry, and fishing with a 23.64% growth rate, and information and communication with a 17.75% increase.
In contrast, human health and social work activities experienced the lowest growth rate, with a decline of 68.34%, followed by electricity, gas, steam, and air conditioning supply with a 45.20% increase, and water supply, sewerage, waste management, and remediation activities with a decline of 29.36%. The top three sectors with the largest shares of VAT payments in the second quarter of 2025 were manufacturing, information and communication, and mining and quarrying, accounting for 27.19%, 20.76%, and 15.04%, respectively.
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, and activities of extraterritorial organisations and bodies recorded the lowest shares, with 0.005%, 0.02%, and 0.03%, respectively. The NBS report also reveals that VAT collections increased by 32.15% on a year-on-year basis, from ₦1.56 trillion in the second quarter of 2024 to ₦2.06 trillion in the second quarter of 2025.
The stability in VAT revenue is noteworthy, given the current economic landscape. The Nigerian government’s efforts to streamline tax collection and broaden the tax base may have contributed to the steady VAT revenue. The growth in VAT payments from various sectors also highlights the importance of these industries in driving economic activity and generating revenue for the government. As the country continues to navigate its economic challenges, the government’s ability to maintain a stable VAT revenue stream will be crucial in supporting its development goals and providing essential public services.