The Nigerian government’s revenue from Value Added Tax (VAT) held steady at ₦2.06 trillion in the second quarter of 2025, according to a National Bureau of Statistics (NBS) report on sectoral VAT distribution. This figure represents a marginal 0.03 % decline quarter‑on‑quarter from the first quarter of 2025. Of the total, local payments contributed ₦1.09 trillion, foreign VAT payments amounted to ₦459.95 billion, and import VAT accounted for ₦508.55 billion.
The sector with the highest growth in VAT payments was real estate activities, which surged by 155.21 %. This was followed by agriculture, forestry and fishing with a 23.64 % increase, and information and communication with a 17.75 % rise. Conversely, human health and social work activities recorded the steepest decline, falling 68.34 %. Electricity, gas, steam and air‑conditioning supply increased by 45.20 %, while water supply, sewerage, waste management and remediation activities dropped 29.36 %.
Manufacturing, information and communication, and mining and quarrying were the top three sectors by share of VAT payments in the second quarter of 2025, contributing 27.19 %, 20.76 % and 15.04 % respectively. At the opposite end, activities of households as employers, undifferentiated goods‑ and services‑producing activities of households for own use, and activities of extraterritorial organisations and bodies held the smallest shares, at 0.005 %, 0.02 % and 0.03 % respectively.
On a year‑on‑year basis, VAT collections rose sharply by 32.15 %, climbing from ₦1.56 trillion in the second quarter of 2024 to ₦2.06 trillion in the same period of 2025. The stability of VAT revenue is notable amid the current economic climate. Efforts by the Nigerian government to streamline tax collection and broaden the tax base likely contributed to this steadiness, while the growth in VAT payments across various sectors underscores their role in driving economic activity and generating government revenue. Maintaining a stable VAT stream will remain essential for supporting development goals and delivering essential public services as the country navigates ongoing economic challenges.
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