Nigeria’s Value Added Tax (VAT) revenue stayed stable at N2.06 trillion in Q2 2025, according to the latest report released by the National Bureau of Statistics (NBS).
This represents a marginal 0.03% decline from the N2.06 trillion collected in Q1 2025, signaling a broadly steady tax environment despite slower quarterly momentum.
Local VAT payments accounted for N1.09 trillion, while foreign VAT and import VAT contributed N459.95 billion and N508.55 billion, respectively.
The data underscores how domestic economic activity continues to anchor VAT inflows even as import-linked taxes remain resilient.
Strong Growth in Real Estate and Agriculture
The NBS highlighted notable variations across sectors, with real estate activities posting the highest quarter-on-quarter growth at 155.21%.
This was followed by agriculture, forestry and fishing at 23.64%, and information and communication at 17.75%, according to figures reported by the News Agency of Nigeria (NAN).
On the other end, “human health and social work activities had the lowest growth rate at –68.34 per cent, followed by electricity, gas, steam and air conditioning supply with –45.20 per cent.”
“This was followed by Water supply, sewerage, waste management and remediation activities at –29.36 per cent.”
Manufacturing, ICT and Mining Lead Sector Shares
Manufacturing remained Nigeria’s VAT powerhouse in Q2 2025, contributing 27.19%, the highest among all sectors.
Information and communication followed at 20.76%, while mining and quarrying secured the third-largest share at 15.04%.
At the bottom of the ranking, the NBS reported that “activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share at 0.005 per cent.”
“This was followed by activities of extraterritorial organisations and bodies at 0.02 per cent, and water supply, sewerage, waste management at 0.03 per cent.”
Year-on-Year Growth Highlights Stronger Tax Base
On a year-on-year basis, VAT revenue rose 32.15% compared to Q2 2024, showing stronger compliance, higher activity, and the impact of price levels across the economy.
The NBS also noted that Q1 2025 VAT stood at N2.06 trillion, up 6.02% from N1.95 trillion recorded in Q4 2024.
In Q1 2025, local VAT generated N1.10 trillion, foreign VAT contributed N454.76 billion, while import VAT totaled N507.00 billion.
During the quarter, electricity, gas, steam and air conditioning supply recorded the highest growth rate at 136.71%, followed by administrative and support services at 45.24%, and professional, scientific and technical activities at 39.00%.
The report added that “activities of extraterritorial organisations and bodies had the lowest growth rate at 35.70 per cent, followed by wholesale and retail trade, repair of motor vehicles and motorcycles; and real estate activities at –14.51 per cent and –11.54 per cent, respectively.”
VAT Trends Signal Improved Tax Compliance
VAT collection reached N1.95 trillion in Q4 2024, a 9.23% increase from the N1.78 trillion recorded in Q3 2024.
The growth was linked to better compliance, stronger business activity, and the influence of inflation on prices.
