Nigeria’s VAT Surges 32.15% to N2 Trillion in Q2 2025
Nigeria’s Value Added Tax (VAT) revenue climbed significantly in the second quarter of 2025, rising 32.15% year-on-year from N1.56 trillion in Q2 2024 to N2.06 trillion, according to the latest VAT Q2 2025 report released by the National Bureau of Statistics (NBS) on Tuesday.
A breakdown of the figures shows that:
- Local VAT payments: N1.09 trillion
- Foreign VAT payments: N459.95 billion
- Import VAT: N508.55 billion
This strong performance reflects continued growth in tax receipts despite marginal quarter-on-quarter changes.
Top Sectoral Contributors in Q2 2025
The NBS report identified the following sectors as the top contributors to VAT revenue in Q2 2025:
- Manufacturing – 27.19% (N560.11 billion)
- Information and Communication – 20.76% (N427.66 billion)
- Mining and Quarrying – 15.04% (N310 billion)
Meanwhile, sectors with the lowest VAT contributions were:
- Household activities (undifferentiated goods/services): 0.005%
- Water supply, sewerage, waste management: 0.03%
- Extraterritorial organisations and bodies: 0.02%
On a quarter-on-quarter basis, VAT dipped slightly by 0.03%, maintaining a total of N2.061 trillion, similar to Q1 2025.
Fastest Growing and Declining Sectors
Highest Growth Rates (QoQ):
- Real estate activities: 155.21%
- Agriculture, forestry and fishing: 23.64%
- Information and communication: 17.75%
Lowest Growth Rates (QoQ):
- Human health and social work: -68.34%
- Electricity, gas, steam & AC supply: -45.20%
- Water supply, sewerage & waste management: -29.36%
VAT Growth Continues After Subsidy Removal and FX Unification
The NBS noted that VAT revenue has consistently increased since the removal of fuel subsidy and the unification of the exchange rate, with growth recorded every quarter since Q3 2023.
In Q1 2025, VAT revenue reached N2.061 trillion, marking a 44.24% YoY increase from Q1 2024 and a 6.02% QoQ rise from N1.85 trillion in Q4 2024.
Key Q1 2025 breakdown includes:
- Local VAT payments: N1.10 trillion
- Foreign VAT payments: N454.76 billion
- Import VAT: N507.00 billion
Major sector contributors in Q1 2025 were:
- Manufacturing – 26.03% (N536.28 billion)
- Information and Communication – 17.51% (N360.88 billion)
- Mining and Quarrying – 17.02% (N350.78 billion)
Low-performing sectors remained similar to Q2, with household activities and waste management contributing the least.
Sectoral Growth Highlights for Q1 2025
Top Growth Sectors:
- Electricity, gas, steam & AC supply: 136.71%
- Administrative and support services: 45.24%
Conclusion
Nigeria’s VAT revenue continues to record strong growth, supported by rising economic activities in manufacturing, ICT, mining, and key service sectors. With fiscal reforms and improved tax compliance, VAT receipts are projected to remain robust through 2025.
