The manufacturing sector in Nigeria continued to show strong growth in its tax contributions throughout 2025.

According to data from the National Bureau of Statistics, the sector paid N1.17 trillion in Value Added Tax (VAT), which is a 45.61% increase from N803.53 billion recorded in 2024. This rise shows that manufacturing remains one of the biggest sources of VAT revenue for the government. The steady increase highlights the sector’s growing importance in supporting the country’s economy.

Company Income Tax (CIT) from the manufacturing sector also went up significantly. It reached N881.29 billion in 2025, up by 32.83% from N663.46 billion the previous year. The sector performed well across all four quarters, with VAT contributions staying fairly stable and CIT showing notable jumps in some periods. These figures prove that manufacturers are playing a bigger role in generating non-oil revenue for the nation.

Analysts have praised the manufacturing sector for its resilience despite economic challenges such as high inflation and fluctuating exchange rates. The consistent growth in tax payments suggests that many companies are expanding their operations and improving their output. This upward trend is seen as a positive sign for Nigeria’s efforts to diversify the economy away from heavy dependence on crude oil.

The manufacturing sector’s strong performance is helping the government in many ways. Higher tax collections from this area mean more money is available for infrastructure, healthcare, and education. It also creates more jobs and supports related industries like transportation and raw material supply. Experts believe that if this growth continues, it could lead to even greater contributions in the coming years.

However, the data also showed some quarterly drops in CIT, especially in the last quarter of 2025. This reminds us that the sector still faces pressures from the wider economy. Policymakers and business leaders will need to work together to solve issues like power supply and access to credit so that manufacturers can keep growing steadily.

Overall, the 2025 tax figures from the manufacturing sector paint a hopeful picture. The strong year-on-year increases in both VAT and CIT show that the sector is becoming more important to Nigeria’s development. With the right support and policies, manufacturing could play an even larger role in building a stronger and more balanced economy for the country.