VAT Revenue Rises 34% to N6.4 Trillion in Nine Months as Non-Oil Tax Collections Surge

Nigeria recorded significant growth in non-oil tax revenues in the first nine months of 2025, with Value Added Tax (VAT) climbing by 34 percent to N6.4 trillion, compared to N4.77 trillion in the same period of 2024, according to National Bureau of Statistics (NBS) data. Quarterly performance showed an upward trend despite marginal fluctuations: VAT dipped 1.4 percent to N2.03 trillion in Q2 from N2.06 trillion in Q1, then rebounded 10.66 percent quarter-on-quarter to N2.28 trillion in Q3. Q3 VAT represented a 28.1 percent year-on-year increase.

Sectoral performance showed Administrative and Support Services leading growth at 89.28 percent, while Manufacturing contributed the largest VAT share at 25.89 percent. Company Income Tax (CIT) also improved remarkably, rising 48 percent to N7.72 trillion in 9M’25 from N5.22 trillion in 9M’24. Q3 CIT reached N2.96 trillion, a 67.19 percent year-on-year increase, with foreign CIT payments (N1.75 trillion) exceeding domestic contributions (N1.21 trillion).

Key Points

The 34% VAT growth demonstrates strong non-oil revenue performance amid economic challenges.
Foreign CIT exceeding domestic collections highlights the significant role of foreign-sourced earnings.
Manufacturing’s leading VAT share (25.89%) underscores the sector’s economic importance.
The Q3 rebound after Q2 dip suggests resilience in consumption and business activity.
The 67% CIT year-on-year growth in Q3 indicates strong corporate profitability.

Nigeria’s non-oil tax revenues are surging, with VAT and CIT posting impressive double-digit growth, a positive signal for fiscal sustainability even as the economy navigates broader challenges.

Sources: National Bureau of Statistics, Nairametrics