Nigeria VAT Collections Hit N2.42 Trillion in Q1 2026 as Tax Revenue Surges 17%

Nigeria’s Value Added Tax (VAT) revenue has recorded a strong start to 2026, rising to N2.42 trillion in the first quarter, according to fresh data released by the National Bureau of Statistics (NBS). This represents a 17.06% increase compared to N2.07 trillion collected in the same period last year, signaling steady growth in non-oil revenue streams.

On a quarter-on-quarter basis, VAT collections also climbed by 9.98%, up from N2.20 trillion recorded in Q4 2025. The NBS attributed this rise to improved tax compliance and stronger activity across key sectors of the Nigerian economy despite ongoing macroeconomic pressures.

Breaking down the figures, local VAT payments contributed N1.11 trillion, while foreign VAT inflows stood at N830.47 billion. Import VAT added another N477.55 billion, showing that both domestic consumption and international trade continue to play a significant role in Nigeria’s revenue mix.

Sector performance showed mixed outcomes. The manufacturing sector remained the largest contributor, accounting for 29.75% of total VAT revenue, followed by information and communication at 20.61%, and mining and quarrying at 12.32%. However, not all sectors performed positively—education recorded the steepest decline at -31.96%, while public administration and defence also saw significant drops.

The strong performance of VAT collections comes at a time when Nigeria is actively reshaping its tax system. Following the introduction of new tax reform laws signed in mid-2025 and implemented in January 2026, the government has intensified efforts to broaden the tax base, improve compliance, and reduce reliance on oil revenue. Analysts say the Q1 figures suggest early signs that these reforms may be gaining traction across the economy.