VAT Revenue Rises to ₦2.06trn in Q2 2025, Reports NBS

Nigeria’s Value Added Tax (VAT) revenue rose to ₦2.06 trillion in the second quarter of 2025, according to a new report released by the National Bureau of Statistics (NBS).

The figure reflects a strong improvement in the country’s non-oil revenue performance despite the challenging economic climate. The NBS said the Q2 2025 VAT collection represents a 32.15 percent increase compared to the ₦1.56 trillion recorded in the same period of 2024. Analysts believe the rise is driven by improved tax compliance, enhanced digital tracking systems, and the Federal Government’s intensified revenue-mobilisation efforts. However, the quarter-on-quarter performance remained largely flat. The ₦2.06 trillion generated in Q2 marks a marginal 0.03 percent decline from the ₦2.06 trillion posted in the first quarter of 2025, indicating a slight slowdown in business activity and consumption during the period. The breakdown of the revenue shows that local VAT payments accounted for the majority of collections, followed by foreign VAT payments and import VAT. The manufacturing sector retained its position as the largest contributor to VAT in the quarter, responsible for 27.19 percent of total collections. It was followed by the information and communication sector, which contributed 20.76 percent, while mining and quarrying accounted for 15.04 percent of total VAT revenue. Real estate activities recorded the strongest quarter-on-quarter growth, while human health and social services experienced the sharpest decline. Economic experts say the strong annual growth offers some fiscal relief as the government works to expand non-oil income and reduce reliance on borrowing. Still, the minimal change between the first and second quarters signals that economic recovery remains uneven. The latest VAT report is expected to shape fiscal planning for both federal and state governments, many of which rely heavily on VAT allocations to fund key expenditures.