VAT revenue increased by 32% to N2.06trn in Q2 2025

Nigeria’s Value Added Tax (VAT) revenue reached N2.06 trillion in the second quarter (Q2) of 2025, according to the latest report released by the National Bureau of Statistics (NBS) on Tuesday.

The NBS report shows that VAT collections rose by 32.15 percent compared to N1.56 trillion recorded in Q2 2024. However, when compared to the first quarter (Q1) of 2025, collections remained largely unchanged, recording a marginal decline of 0.03 percent from N2.06 trillion.

Breaking down the figures, local VAT payments accounted for N1.09 trillion, import VAT contributed N508.55 billion, while VAT from foreign transactions stood at N459.95 billion.

Sectoral analysis revealed that real estate activities experienced the highest quarter-on-quarter growth, surging 155.21 percent. Agriculture, forestry and fishing followed with a 23.64 percent increase, while information and communication grew by 17.75 percent.

Conversely, the sectors recording declines included human health and social work activities at -68.34 percent, electricity, gas, steam and air conditioning supply at –45.20 percent, and water supply, sewerage, waste management and remediation activities at –29.36 percent.

In terms of contribution to total VAT collections, manufacturing led with 27.19 percent, followed by information and communication at 20.76 percent, and mining and quarrying at 15.04 percent. The smallest contributors included activities of households as employers, undifferentiated goods and services-producing activities of households for own use at 0.005 percent, extraterritorial organizations at 0.02 percent, and water supply, sewerage, and waste management at 0.03 percent.

The NBS reiterated that VAT remains a significant source of revenue for the government, reflecting strong performance across key sectors of the economy despite declines in a few areas.