Nigeria’s Value Added Tax (VAT) collections increased to N2.28 trillion (approximately $1.46 billion) in the third quarter of 2025, reflecting sustained economic activity across major sectors, according to the latest report released by the National Bureau of Statistics (NBS).
Okay News reports that the Q3 performance represents a 10.66 percent quarter-on-quarter increase from the N2.06 trillion posted in the second quarter of 2025, highlighting continued resilience in domestic consumption, cross-border services, and import-related transactions. On a year-on-year basis, VAT collections rose by 28.10 percent compared to Q3 2024, suggesting improved compliance levels, stronger sectoral output, and expanding taxable transactions across the economy.
A breakdown of Value Added Tax sources shows local payments accounted for N1.12 trillion of total collections, foreign VAT contributed N680.23 billion, and import VAT stood at N479.79 billion. Manufacturing maintained its position as the largest contributor to VAT revenue, accounting for 25.89 percent of total collections, followed by information and communication at 18.77 percent, and mining and quarrying at 14.85 percent.
Administrative and support service activities recorded the highest growth rate at 89.28 percent, while arts, entertainment and recreation grew by 82.49 percent. Real estate activities contracted by 51.33 percent, marking the steepest decline during the quarter. VAT allocations to the Federal Government, states, and local government areas rose to N7.73 trillion in 2025, up from N6.11 trillion in 2024, representing a 26.46 percent year-on-year increase. This VAT revenue growth reflects expanding economic activity and improved compliance across sectors.
 collections increased to N2.28 trillion (approximately $1.46 billion) in the third quarter of 2025, reflecting sustained economic activity across major sectors, according to the latest report released by the National Bureau of Statistics (NBS).){kind=link}