VAT revenue rises 34% to N6.4trn in 9 months
Nigeria’s VAT and Company Income Tax Collections Surge in First Nine Months of 2025
By Elizabeth Adegbesan and Progress Godfrey
Nigeria’s revenue from Value Added Tax (VAT) and Company Income Tax (CIT) experienced significant increases in the first nine months of 2025, highlighting improved non-oil revenue performance and heightened fiscal capacity.
According to data from the National Bureau of Statistics (NBS), VAT collections rose by 34 percent year-on-year, reaching ₦6.4 trillion in the first nine months of 2025, up from ₦4.77 trillion during the same period in 2024.
A quarterly analysis reveals a mixed performance. VAT collections dipped slightly by 1.4 percent, from ₦2.06 trillion in the first quarter to ₦2.03 trillion in the second quarter. However, there was a rebound in the third quarter, with VAT rising by 10.66 percent from the previous quarter to ₦2.28 trillion. Year-on-year, Q3 saw a growth of 28.1 percent.
In the third quarter, local VAT payments totaled ₦1.12 trillion, while foreign VAT contributions were ₦680.23 billion. Import VAT accounted for ₦479.79 billion.
Sectoral data indicated strong growth in specific areas. The Administrative and Support Services sector posted the highest quarterly growth at 89.28 percent, followed by Arts, Entertainment and Recreation at 82.49 percent, and Human Health and Social Work at 32.4 percent. Conversely, the Real Estate sector faced the steepest decline at 51.33 percent. The Manufacturing sector led overall contributions with 25.89 percent, trailed by Information and Communication at 18.77 percent and Mining and Quarrying at 14.85 percent.
Company Income Tax collections also saw a substantial increase, rising by 48 percent to ₦7.72 trillion in the first nine months of 2025, compared to ₦5.22 trillion in the same period of the previous year.
On a quarterly basis, CIT amounted to ₦1.98 trillion in the first quarter, climbed 40 percent to ₦2.78 trillion in the second quarter, and increased by 5.7 percent to ₦2.96 trillion in the third quarter, marking a 67.19 percent year-on-year rise.
Further analysis revealed that domestic CIT payments in the third quarter totaled ₦1.21 trillion, while foreign CIT payments were ₦1.75 trillion, indicating a robust contribution from foreign-sourced earnings.
The strong performance of VAT and CIT underscores the resilience of Nigeria’s non-oil revenue and the government’s improved ability to mobilize revenue.
