ABUJA, Nigeria — Nigeria’s manufacturing sector generated ₦329.59 billion ($213 million) in Value Added Tax (VAT) revenue during the first quarter of 2026, reinforcing its position as one of the country’s largest contributors to non-oil tax revenue. Data released by the National Bureau of Statistics (NBS) showed the figure exceeded collections recorded in all four quarters of 2025.
VAT revenue from manufacturing rose from ₦286.95 billion ($185 million) recorded in the corresponding period of 2025, representing a year-on-year increase of about 14.86%. Collections stood at ₦297.68 billion in the second quarter of 2025, ₦290.79 billion in the third quarter, and ₦292.12 billion in the fourth quarter before climbing to the latest figure.
Okay News reports that total VAT contributions from the manufacturing sector reached ₦1.17 trillion ($755 million) in 2025, compared with ₦803.53 billion ($519 million) in 2024. The latest performance reflects continued production and consumption activities across the sector despite prevailing economic pressures.
According to the NBS, manufacturing accounted for 9.57% of Nigeria’s real Gross Domestic Product in the first quarter of 2026. Although this was slightly lower than the 9.62% recorded in the corresponding quarter of 2025, it marked a significant improvement from the 7.4% contribution posted in the fourth quarter of 2025. Nigeria’s economy expanded by 3.89% year-on-year during the review period.
The data comes as Nigeria continues efforts to diversify its economy away from crude oil dependence. Manufacturing remains a major contributor to non-oil GDP and government revenue, although operators continue to face challenges including energy costs, foreign exchange constraints, infrastructure deficits and high borrowing costs. The Centre for the Promotion of Private Enterprise (CPPE) recently stated that stronger manufacturing growth remains essential for long-term economic transformation.
