Nigeria’s Value Added Tax (VAT) revenue reached N2.28 trillion in the third quarter of 2025, representing a significant 10.66% increase from the N2.06 trillion collected in the previous quarter, according to official data.
The figure, published in the National Bureau of Statistics’ (NBS) Sectorial Distribution of VAT report for Q3 2025, also shows a robust year-on-year rise of 28.10% compared to the same period in 2024. The report, released on Tuesday, provides a detailed breakdown of collections and sectoral performance.
The total VAT is composed primarily of local payments, which amounted to N1.12 trillion. Foreign VAT payments contributed N680.23 billion, while import VAT added N479.79 billion to the quarterly total.
Sectoral analysis revealed pronounced shifts in growth rates. On a quarter-on-quarter basis, administrative and support service activities experienced the sharpest expansion at 89.28%. This was followed by arts, entertainment and recreation (82.49%) and human health and social work activities (32.40%). Conversely, several sectors declined substantially. Real estate activities saw the steepest drop at -51.33%, followed by activities of households as employers (-36.22%) and other service activities (-20.30%).
When examining shares of the total VAT pool, manufacturing remained the dominant contributor, accounting for 25.89% of the total. Information and communication followed with an 18.77% share, while mining and quarrying constituted 14.85%. At the lower end, activities of households as employers recorded a negligible 0.003% share, tied with activities of extraterritorial organisations and bodies, and water supply, sewerage, and waste management (both at 0.03%).
The consistent quarterly and annual growth underscores VAT’s role as a critical and, recently, increasingly reliable source of government revenue. The significant contributions from manufacturing and information & communication highlight the ongoing influence of these core economic sectors. Meanwhile, the volatility in growth rates among service-oriented sectors reflects broader economic adjustments. The NBS data provides essential insight into consumption patterns and the operational health of various industries across Nigeria’s formal economy.
