Nigeria’s Value Added Tax (VAT) revenue increased to N2.42 trillion in the first quarter of 2026, representing a 9.98 per cent rise from the N2.20 trillion recorded in the fourth quarter of 2025.

This is according to the latest VAT Q1 2026 report released by the National Bureau of Statistics (NBS).

The report showed that local VAT payments accounted for N1.11 trillion of the total collections, while foreign VAT contributed N830.47 billion and import VAT generated N477.55 billion during the period.

On a quarter-on-quarter basis, activities of households as employers and undifferentiated goods- and services-producing activities for own use recorded the highest growth rate at 74.36 per cent. This was followed by arts, entertainment and recreation, which grew by 20.91 per cent, and manufacturing, which expanded by 12.82 per cent.

However, the education sector posted the sharpest decline, falling by 31.96 per cent. Public administration and defence, including compulsory social security activities, declined by 31.38 per cent, while activities of extraterritorial organisations and bodies dropped by 29.89 per cent.

In terms of sectoral contributions, manufacturing remained the largest contributor to VAT revenue, accounting for 29.75 per cent of total collections during the quarter.

The information and communication sector followed with a contribution of 20.61 per cent, while mining and quarrying contributed 12.32 per cent.

Conversely, activities of households as employers and undifferentiated goods- and services-producing activities for own use recorded the lowest share at 0.01 per cent. Activities of extraterritorial organisations and bodies contributed 0.02 per cent, while water supply, sewerage, waste management and remediation activities accounted for 0.06 per cent.

On a year-on-year basis, VAT collections rose by 17.06 per cent compared to the corresponding period in 2025, highlighting continued growth in government tax revenue despite varying performances across economic sectors.

The latest figures underscore the growing role of manufacturing, telecommunications and extractive industries in driving Nigeria’s non-oil tax revenue as authorities continue efforts to strengthen domestic revenue mobilisation.

The post Nigeria’s VAT Revenue Hits N2.42tn in Q1 2026 – NBS appeared first on Housing TV Africa.

Nigeria’s manufacturing sector recorded a sharp rise in Value Added Tax (VAT) contributions in 2025, generating N875.4 billion in the first nine months of the year, according to new data.

The figures, released by the , show that VAT remittances from manufacturers increased by 54.7 per cent year-on-year compared to the N566.0 billion recorded during the same period in 2024.

The amount generated between January and September 2025 has already exceeded the N578.4 billion VAT contribution recorded by the sector in the entire 2023 fiscal year.

Manufacturing leads VAT contributions

A sectoral breakdown of the Q3 2025 VAT report shows that manufacturing remained the largest contributor to VAT collections in Nigeria.

The sector accounted for 25.89 per cent of total VAT revenue in the third quarter of 2025, ahead of:

• Information and communication – 18.77%
• Mining and quarrying – 14.85%

Manufacturing also ranked first in earlier quarters, contributing 26.03 per cent in Q1 2025 and 27.19 per cent in Q2 2025, highlighting its growing importance to Nigeria’s tax revenue.

Higher prices driving VAT growth

Industry analysts say the rise in VAT remittances reflects higher product prices, rising production costs and the impact of currency depreciation.

These factors have increased the taxable value of manufactured goods across the supply chain, resulting in higher nominal VAT collections.

Despite operating under difficult economic conditions — including energy shortages, foreign exchange volatility and weak consumer demand — the manufacturing sector continues to play a crucial role in Nigeria’s non-oil revenue generation.

Government reliance on non-oil taxes

Economists say the surge in VAT collections highlights the growing fiscal importance of the manufacturing sector as the Federal Government seeks to diversify revenue sources away from oil.

However, industry stakeholders warn that higher VAT remittances may not necessarily indicate stronger industrial output.

They argue that inflation and exchange-rate effects may have significantly inflated tax collections without a corresponding rise in real production.

Manufacturers raise concerns

The has expressed concern over the growing tax burden on manufacturers.

Director-General warned that rising VAT and multiple taxes could weaken the competitiveness of Nigerian manufacturers.

According to him, higher taxes increase production costs and could force companies to transfer the burden to consumers.

“The high VAT rate, alongside other taxes and levies, makes Nigerian products less competitive both locally and internationally,” Ajayi-Kadir said.

He also cautioned that further increases in VAT could reduce consumer demand, increase unsold inventory, and potentially threaten jobs within the sector.

The post Nigeria’s Manufacturing Sector Generates N875bn VAT in 9 Months, Surpasses 2023 Total appeared first on Housing TV Africa.