Nigeria’s Value Added Tax (VAT) collections rose to N2.42 trillion in the first
quarter of this year, National Bureau of Statistics (NBS) data have shown.
The figure represents 17.06 per cent increase from the N2.07 trillion generated
in the corresponding period of 2025.
The strong VAT performance recorded in the first quarter of 2026 reflects
sustained economic activity across key sectors such as manufacturing,
telecommunications, and mining.
The increase in VAT collections suggests that Nigeria’s non-oil revenue base
continues to expand, providing additional resources for government spending
and fiscal management.
The NBS also reported that VAT revenue grew by 9.98 per cent on a quarter-
on-quarter basis from N2.20 trillion recorded in the fourth quarter of 2025,
reflecting improved tax collections across key sectors of the economy.
Of the total VAT generated during the quarter, local payments accounted for
N1.11 trillion, foreign VAT payments contributed N830.47 billion, while
import VAT stood at N477.55 billion.
According to the NBS, several sectors recorded significant growth in their
Value Added Tax (VAT) contributions during the first quarter of 2026,
reflecting varying levels of economic activity across the country.
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 by 74.36 per cent.
This was followed by the arts, entertainment and recreation sector, which
expanded by 20.91 per cent, while the manufacturing sector posted a robust
12.82 per cent increase in VAT contributions.
Sectoral performance shows that education sector recorded the sharpest drop,
with VAT contributions falling by 31.96 per cent. This was closely followed by
public administration and defence, including compulsory social security, which
declined by 31.38 per cent, while activities of extraterritorial organisations and
bodies decreased by 29.89 per cent.
In terms of overall contribution to VAT revenue, the manufacturing sector
maintained its position as the largest contributor, accounting for 29.75% of total
collections in the first quarter.
The information and communication sector followed with 20.61%, underscoring
the growing importance of digital and telecommunications services to the
economy. Mining and quarrying ranked third, contributing 12.32 per cent of
total VAT revenue.
At the lower end of the spectrum, activities of households as employers and
undifferentiated goods-and-services-producing activities for own use accounted
for just 0.01 per cent of total VAT collections.
Activities of extraterritorial organisations and bodies contributed 0.02 per cent,
while water supply, sewerage, waste management and remediation activities
made up 0.06 per cent.
The figures highlight the continued dominance of manufacturing,
telecommunications, and extractive industries in Nigeria’s VAT revenue profile,
while also reflecting the uneven pace of growth across different sectors of the
economy.
The NBS added that overall VAT collections in Q1 2026 increased by 17.06 per
cent compared with the same period of 2025.
VAT has emerged as one of Nigeria’s most important sources of non-oil
revenue as the government intensifies efforts to diversify its income base and
reduce dependence on crude oil earnings.