VAT revenue rises 34% to N6.4trn in 9 months

Nigeria recorded significant growth in non-oil tax revenues in the first nine months of 2025, with Value Added Tax (VAT) and Company Income Tax (CIT) collections posting strong year-on-year increases.Figures released by the National Bureau of Statistics (NBS) show that VAT revenue climbed by 34 per cent to N6.4 trillion in 9M25, compared to N4.77 trillion in the same period of 2024. On a quarterly basis, performance reflected slight fluctuations but an overall upward trend. VAT collections dipped marginally by 1.4 per cent to N2.03 trillion in Q225 from N2.06 trillion in Q125. However, revenue rebounded in Q325, rising by 10.66 per cent quarter-on-quarter to N2.28 trillion. Year-on-year, VAT in Q325 expanded by 28.1 per cent. A breakdown of Q325 collections shows that local VAT generated N1.12 trillion, foreign VAT contributed N680.23 billion, while import VAT stood at N479.79 billion. Sectoral performance revealed strong expansion in Administrative and Support Services, which recorded the highest quarter-on-quarter growth of 89.28 per cent. Arts, Entertainment and Recreation followed with 82.49 per cent, while Human Health and Social Work grew by 32.4 per cent. In contrast, the Real Estate sector experienced the sharpest contraction at 51.33 per cent. Manufacturing accounted for the largest share of VAT contributions at 25.89 per cent, followed by Information and Communication at 18.77 per cent, and Mining and Quarrying at 14.85 per cent. Company Income Tax also showed remarkable improvement, increasing by 48 per cent to N7.72 trillion in 9M25, up from N5.22 trillion recorded in 9M24. Quarterly data indicated that CIT stood at N1.98 trillion in Q125, rose sharply by 40 per cent to N2.78 trillion in Q225, and edged up by 5.7 per cent to N2.96 trillion in Q325. The Q3 performance represented a 67.19 per cent year-on-year increase. Further details show that domestic CIT payments in Q325 totalled N1.21 trillion, while foreign CIT payments amounted to N1.75 trillion, highlighting the strong role of foreign-sourced earnings in overall tax revenue. The post VAT revenue rises 34% to N6.4trn in 9 months appeared first on Linda Ikeji Blog.