Foreign Currency Tax Revenue Hits N6.33tn as Naira Volatility Reshapes Nigeria’s Tax Base
Nigeria’s tax system saw a major shift in 2025 as foreign currency-denominated tax receipts climbed to N6.33tn, reflecting rising exposure to global trade and continued naira volatility. The figure was derived from data released by the National Bureau of Statistics (NBS) and analysed across key tax segments.
The amount represents a 27.3 per cent increase from the N4.97tn recorded in 2024, underscoring how exchange rate movements and stronger participation from multinational companies are reshaping government revenue streams. Analysts note that more businesses earning in foreign currencies are now contributing significantly to Nigeria’s tax pool.
A breakdown of the figures shows that foreign-currency-related payments accounted for about 35.5 per cent of total collections from Value Added Tax (VAT) and Company Income Tax (CIT), which together stood at N17.83tn in 2025. VAT rose from N6.72tn in 2024 to N8.61tn in 2025, while CIT increased from N7.66tn to N9.22tn over the same period.
Within these categories, VAT linked to foreign-currency transactions grew from N1.83tn to N2.10tn, driven largely by sectors such as oil and gas, telecommunications, financial services, and digital platforms. Similarly, foreign-currency CIT jumped from N3.14tn in 2024 to N4.23tn in 2025, reflecting stronger earnings from multinational firms and exporters operating in dollar terms.
However, the data also revealed volatility across the year. Foreign-currency CIT fell sharply in the second quarter of 2025 before rebounding in the third quarter, indicating fluctuations in global earnings and exchange rate dynamics. Overall, foreign-currency tax inflows started strong in Q1, peaked in Q3, and eased in Q4.
The trend comes amid ongoing foreign exchange reforms and a shift toward a more market-driven naira valuation. While this has increased the local currency value of dollar-based earnings, it has also deepened Nigeria’s reliance on sectors exposed to global currency movements, signalling a gradual restructuring of the country’s tax base.
source: punch