Nigeria’s Value Added Tax (VAT) revenue rose to ₦2.28 trillion in the third quarter of 2025, marking a significant increase of 10.66% compared to the previous quarter and a substantial 28.10% growth from the same period in 2024, according to data released by the National Bureau of Statistics (NBS).
The report provides a detailed breakdown of the Q3 collections. Local VAT payments contributed the largest share at ₦1.12 trillion. Foreign VAT payments amounted to ₦680.23 billion, while VAT on imports added ₦479.79 billion to the total.
Sectoral performance varied widely. On a quarter-on-quarter basis, administrative and support service activities recorded the highest growth rate 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, with real estate activities seeing the steepest drop at -51.33%. Activities of households as employers and other service activities also contracted significantly.
In terms of contribution to the total VAT pool, manufacturing remained the dominant sector, accounting for 25.89% of the total. Information and communication followed with an 18.77% share, and mining and quarrying contributed 14.85%. At the lower end, activities of households as employers for own use represented a mere 0.003% of total collections, while extraterritorial organisations and water supply, sewerage, and waste management each recorded a 0.03% share.
The consistent rise in VAT receipts underscores the broadening tax base and improved compliance or economic activity within Nigeria’s formal sector. The substantial quarterly and yearly increases suggest robust underlying economic transactions subject to the consumption tax. The NBS data highlights which economic segments are currently driving tax revenue and which are lagging, offering insight into the structural dynamics of Nigeria’s non-oil revenue stream. This performance is critical for federal and state government budgeting, as VAT distributions form a key part of statutory allocations.
