March 04, (THEWILL) — Nigeria’s Value Added Tax (VAT) revenue rose to ₦2.28 trillion in the third quarter of 2025, marking a 10.66 per cent increase from the ₦2.06 trillion recorded in the preceding quarter, according to the National Bureau of Statistics (NBS).
The latest figures reflect sustained growth in consumption and improved tax compliance across key sectors of the economy.
On a year-on-year basis, VAT collections grew by about 28.1 per cent compared to the corresponding period in 2024, underscoring stronger revenue mobilisation efforts and expanding economic activity.
A breakdown of the data shows that domestic VAT payments accounted for the largest share of the total, contributing ₦1.12 trillion.
Foreign VAT stood at ₦680.23 billion, while import VAT contributed ₦479.79 billion during the quarter.
The dominance of domestic VAT highlights the resilience of local economic transactions despite prevailing macroeconomic pressures.
Sectoral analysis reveals that manufacturing emerged as the highest contributor to VAT revenue during the period, followed by the information and communication sector, as well as mining and quarrying.
These sectors continue to drive tax receipts, reflecting their central role in Nigeria’s production and services landscape.
However, performance was not uniform across all segments of the economy.
While administrative and support services, arts and entertainment, and health-related services recorded significant quarter-on-quarter growth, sectors such as real estate and certain service activities experienced notable declines.
Overall, the Q3 2025 VAT performance signals a positive revenue trajectory for the government, potentially strengthening fiscal capacity amid ongoing economic reforms.
The upward movement also suggests that tax administration measures and compliance initiatives may be yielding measurable results, even as sector-specific challenges persist.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
