LAGOS, Nigeria — Nigeria’s Value Added Tax (VAT) collections rose to N2.42 trillion (approximately $1.57 billion) in the first quarter of 2026, representing a 17.06% increase from the N2.07 trillion (approximately $1.35 billion) generated in the corresponding period of 2025.
Okay News reports that the latest data released by the National Bureau of Statistics (NBS) also showed VAT revenue grew 9.98% on a quarter-on-quarter basis from N2.20 trillion recorded in the fourth quarter of 2025.
Of the total VAT generated during the quarter, local payments accounted for N1.11 trillion (approximately $721 million), foreign VAT payments contributed N830.47 billion (approximately $540 million), and import VAT stood at N477.55 billion (approximately $310 million).
The manufacturing sector maintained its position as the largest contributor to VAT revenue, accounting for 29.75% of total collections in the first quarter. The information and communication sector followed with 20.61%, while mining and quarrying ranked third, contributing 12.32% of total VAT revenue.
On a quarter-on-quarter basis, the strongest growth was recorded in activities of households as employers and undifferentiated goods-and-services-producing activities for own use, which surged 74.36%. The arts, entertainment and recreation sector expanded 20.91%, while the manufacturing sector posted a 12.82% increase in VAT contributions.
The education sector recorded the sharpest decline, with VAT contributions falling 31.96%. Public administration and defence, including compulsory social security, declined 31.38%, while activities of extraterritorial organisations and bodies decreased 29.89%.
At the lower end of the contribution spectrum, activities of extraterritorial organisations and bodies contributed 0.02% of total VAT collections, while water supply, sewerage, waste management and remediation activities made up 0.06%.
In June 2025, President Bola Tinubu signed into law four landmark tax reform bills designed to modernise Nigeria’s fiscal and revenue administration framework, comprising the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. The new tax laws came into effect in January 2026.
In March 2026, the Federal Government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aimed at simplifying compliance and providing a clearer pathway into the formal economy.
