Nigeria’s Value Added Tax (VAT) collection has maintained a steady rise since the inception of the present administration, recording a seventh consecutive rise in the second quarter of 2025.

The National Bureau of Statistics (NBS), in its Q2 2015 VAT collection report, noted that VAT revenue rose by 32.15 per cent from N1.56 trillion in the second quarter of 2024 to N2.06 trillion in the second quarter of 2025.

It noted that local payments made the highest contribution with N1.09 trillion, foreign VAT payments were N459.95 billion, while import VAT contributed N508.55 billion during the period.

It reports that on a quarter-on-quarter basis, real estate activities recorded the highest growth rate with 155.21 per cent, followed by agriculture, forestry and fishing with 23.64 per cent, and information and communication with 17.75 per cent.

The report, however, shows that human health and social work activities had the lowest growth rate with –68.34 per cent, followed by electricity, gas, steam and air conditioning supply with –45.20 per cent, and water supply, sewerage, waste management and remediation activities with –29.36 per cent.

In terms of sectoral contributions, the top three activities with the largest shares in Q2 2025 were manufacturing with 27.19 per cent, up by 1.16 per cent in Q1; information and communication with 20.76 per cent, an increase of 3.26 per cent over the 17.51 per cent recorded in the first quarter of 2025; and mining and quarrying with 15.04 per cent, a 1.98 per cent drop from 17.02 per cent in the first quarter.

Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the lowest share with 0.005 per cent, followed by activities of extraterritorial organisations and bodies with 0.02 per cent, and water supply, sewerage and waste management with 0.03 per cent.

Starting from the third quarter of 2023, after the removal of fuel subsidy and unification of the exchange rates, Nigeria has recorded a consistent rise in VAT revenue.

According to NBS, in Q3 2023, Nigeria’s Value Added Tax (VAT) collections reached N948.07 billion; in Q4 2023, it rose to N1.20 trillion and further rose to N1.43 trillion in the first quarter (Q1) of 2024.

In the second quarter of 2024, VAT collections maintained its upward trajectory rising to N1.56 trillion; in Q3 2024, it rose further to N1.78 trillion, and in Q4 it moved further up to N1.95 trillion.