Nigeria VAT Surges to N2.42 Trillion in Q1 2026 as Economy Strengthens Non-Oil Revenue Base
Nigeria’s economy recorded a strong boost in non-oil revenue as Value Added Tax (VAT) collections climbed to N2.42 trillion in the first quarter of 2026, according to fresh data released by the National Bureau of Statistics (NBS). This figure represents a 17.06% increase compared to the N2.07 trillion generated in the same period of 2025, signaling improved tax performance across key sectors.
On a quarterly basis, VAT collections also rose by 9.98%, up from N2.20 trillion recorded in Q4 2025. The steady growth reflects stronger compliance and rising economic activity following recent fiscal reforms introduced by the federal government. Of the total revenue collected, local payments contributed N1.11 trillion, foreign VAT accounted for N830.47 billion, while import VAT added N477.55 billion.
Sectoral performance showed a mixed but largely positive picture of the economy. The manufacturing sector remained the largest contributor, responsible for 29.75% of total VAT revenue, followed by information and communication at 20.61%, and mining and quarrying at 12.32%. These sectors continue to anchor Nigeria’s non-oil revenue base, especially as digital services and industrial output expand.
However, not all sectors recorded growth. Education saw the steepest decline with a 31.96% drop in VAT contributions, while public administration and defence fell by 31.38%. Activities of extraterritorial organisations also declined significantly by 29.89%, reflecting uneven economic activity across different segments of the economy.
Overall, the latest VAT figures highlight Nigeria’s gradual shift toward a more diversified revenue structure. With recent tax reforms taking effect in January 2026, including new administration frameworks aimed at improving compliance, analysts expect VAT to remain a key driver of government revenue as the country continues to strengthen its fiscal position.
source: nairametrics