Nigeria’s VAT Revenue Hits N2.06 Trillion in Q2 2025, Driven by Manufacturing and ICT

Nigeria’s Value Added Tax (VAT) revenue remained largely stable at N2.06 trillion in the second quarter of 2025, according to the latest report released by the National Bureau of Statistics (NBS) on Tuesday in Abuja. This figure represents a marginal 0.03% decline compared to the N2.06 trillion collected in Q1 2025, signaling steady fiscal performance despite slight quarterly fluctuations.

Breaking down the collections, the report showed local VAT payments at N1.09 trillion, foreign VAT payments at N459.95 billion, and import VAT at N508.55 billion in Q2. On a sectoral basis, real estate activities recorded the highest growth rate at 155.21%, followed by agriculture, forestry, and fishing at 23.64%, while information and communication activities grew by 17.75%.

However, some sectors lagged in VAT contributions. Human health and social work activities recorded the steepest decline at –68.34%, followed by electricity, gas, steam, and air conditioning supply at –45.20%. Water supply, sewerage, and waste management activities also declined by 29.36%, highlighting uneven growth across the economy.

In terms of sectoral contributions, manufacturing led the way with 27.19%, followed by information and communication at 20.76%, and mining and quarrying at 15.04%. On the lower end, household activities for own use, extraterritorial organizations, and water/waste management contributed less than 0.05% combined, underscoring their minimal impact on overall VAT revenue.

Year-on-year, VAT collections in Q2 2025 rose by 32.15% compared to Q2 2024, reflecting stronger tax compliance and economic activity. Analysts note that steady VAT growth, led by manufacturing and ICT, continues to provide a critical revenue stream for the federal government while supporting Nigeria’s economic recovery.

source: nairametrics