Nigeria recorded a significant rise in foreign currency-denominated tax collections in 2025, as total receipts climbed to N6.33 trillion. According to data from the National Bureau of Statistics (NBS) analysed by Nairametrics, the figure highlights the increasing influence of dollar-linked transactions on the country’s revenue base.
The amount represents a 27.3% increase from N4.97 trillion recorded in 2024. The growth was largely driven by higher corporate income tax (CIT) payments in foreign currency and stronger value-added tax (VAT) inflows linked to imports and offshore transactions. Overall tax performance for the year showed that foreign currency payments made up a substantial portion of government revenue.
In total, VAT and CIT collections combined stood at N17.83 trillion in 2025, with N8.61 trillion from VAT and N9.22 trillion from CIT. Out of this, N6.33 trillion came from foreign currency or its naira equivalent, representing about 35.5% of total tax revenue. This share slightly increased from 34.9% in 2024, underscoring a steady shift toward external trade and foreign-linked economic activity.
Corporate income tax remained the strongest driver of this trend, contributing N4.23 trillion in foreign currency payments—about 66.8% of total foreign currency tax receipts. Major contributors include multinational companies in oil and gas, telecommunications, aviation, shipping, and manufacturing. VAT from imports and foreign transactions also grew steadily, supported by higher import volumes and offshore service payments, while domestic VAT still dominated overall collections.
Despite the strong growth, quarterly data showed fluctuations in inflows, with peaks in Q1 and Q3 2025. Analysts note that the rising dependence on foreign currency tax receipts ties Nigeria’s fiscal performance more closely to global market conditions and exchange rate movements, making revenue more sensitive to external economic shifts.
source: nairametrics