Nigeria’s Value Added Tax (VAT) revenue reached ₦2.06 trillion in Q2 2025, according to the latest report from the National Bureau of Statistics (NBS). While this shows a marginal 0.03% quarter-on-quarter decline from Q1 2025, it represents a strong 32.15% year-on-year growth compared to Q2 2024. The numbers indicate sustained economic activity across key sectors.
Local VAT Leads Revenue Contributions
Local VAT payments remained the largest contributor, bringing in ₦1.09 trillion. Import VAT contributed ₦508.55 billion, while foreign VAT payments accounted for ₦459.95 billion. Together, these streams form the backbone of Nigeria’s VAT revenue.
Sectors Driving Growth
On a quarter-on-quarter basis, real estate activities recorded the highest growth at 155.21%, reflecting renewed investments. Agriculture, forestry, and fishing grew by 23.64%, and information and communication increased by 17.75%, supported by ongoing digital expansion.
Some sectors, however, declined. Human health and social work activities dropped by 68.34%, while electricity, gas, steam, and air conditioning supply fell by 45.20%. Water supply, sewerage, and waste management declined by 29.36%.
Top Sectoral Contributors
Manufacturing accounted for the largest share at 27.19%, followed by information and communication at 20.76%, and mining and quarrying at 15.04%.
On the lower end, households as employers represented just 0.005%, extraterritorial organisations contributed 0.02%, and water supply and waste management made up 0.03% of total VAT revenue.
Q1 2025 Context
For comparison, Q1 2025 VAT collections also stood at ₦2.06 trillion, up 6.02% from ₦1.95 trillion in Q4 2024. Local VAT contributed ₦1.10 trillion, import VAT ₦507 billion, and foreign VAT ₦454.76 billion.
Sectors with the highest growth in Q1 included electricity and gas supply (136.71%), administrative and support services (45.24%), and professional and technical activities (39%). Meanwhile, some sectors, such as wholesale and retail trade, experienced declines.
Read also: FIRS Records ₦22.59 Trillion Tax Collection Between January and September 2025
