June 12, (THEWILL) — Nigeria generated N2.42 trillion in Value Added Tax (VAT) revenue in the first quarter of 2026, marking a 17.06 percent increase from the N2.07 trillion recorded in the corresponding period of 2025, according to the latest figures released by the National Bureau of Statistics.
The data also showed that VAT collections rose by 9.98 percent compared with the N2.20 trillion generated in the fourth quarter of 2025, reflecting stronger tax receipts across major sectors of the economy.
A breakdown of the revenue indicates that local VAT payments accounted for N1.11 trillion, while foreign VAT payments contributed N830.47 billion. Import VAT generated N477.55 billion during the quarter.
Sectoral analysis revealed mixed performance across the economy.
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 in VAT contributions, rising by 74.36 percent.
The arts, entertainment and recreation sector followed with a 20.91 percent increase, while manufacturing expanded by 12.82 percent.
However, some sectors posted significant declines. The education sector recorded the steepest drop, with VAT contributions falling by 31.96 percent.
Public administration and defence, including compulsory social security, declined by 31.38 percent, while activities of extraterritorial organisations and bodies fell by 29.89 percent.
Manufacturing remained the largest contributor to VAT revenue, accounting for 29.75 percent of total collections.
The information and communication sector contributed 20.61 percent, highlighting the growing role of telecommunications and digital services in the economy, while mining and quarrying accounted for 12.32 percent.
The strong VAT performance comes as Nigeria continues efforts to strengthen non-oil revenue sources.
The implementation of new tax reforms, which took effect in January 2026 following the signing of four major tax bills by Bola Tinubu in 2025, is expected to further enhance revenue administration and tax compliance.
The latest figures underscore sustained economic activity in key sectors and reinforce VAT’s position as a critical pillar of government revenue.
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.
