NBS: VAT rises to N2.28trn in Q3 2025, manufacturing leads

Nigeria’s Value Added Tax (VAT) collections increased to N2.28 trillion in the third quarter of 2025, reflecting sustained economic activity across major sectors.

The figure was disclosed in the latest report released by the National Bureau of Statistics (NBS).

The Q3 performance highlights continued resilience in domestic consumption, cross-border services, and import-related transactions.

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According to the report, the N2.28 trillion recorded in Q3 represents a 10.66% quarter-on-quarter increase from the N2.06 trillion posted in the second quarter of 2025.

**What the data is saying **

A breakdown of VAT sources shows contributions from local, foreign, and import transactions during the quarter. The data demonstrates the combined impact of domestic economic activity and international trade flows on government revenue.

• Local VAT payments accounted for N1.12 trillion of total collections in Q3 2025.
• Foreign VAT payments contributed N680.23 billion.
• Import VAT stood at N479.79 billion.
• On a year-on-year basis, VAT collections rose by 28.10% compared to Q3 2024.

The strong annual growth suggests improved compliance levels, stronger sectoral output, and expanding taxable transactions across the economy.

**More Insights **

The report highlighted significant variations in sectoral growth rates on a quarter-on-quarter basis, with some sectors recording sharp expansions while others contracted.

• Administrative and support service activities recorded the highest growth rate at 89.28 percent.
• Arts, entertainment and recreation grew by 82.49 percent, while Human health and social work activities expanded by 32.40%.
• Real estate activities contracted by 51.33%, marking the steepest decline during the quarter.
• Activities of households as employers fell by 36.22%, while Other service activities declined by 20.30 percent.

These mixed trends reflect uneven performance across sectors, despite the overall increase in VAT receipts.

In terms of sectoral contributions, Manufacturing maintained its position as the largest contributor to VAT revenue in Q3 2025. The data also aligns with earlier trends observed in previous quarters.

• Manufacturing accounted for 25.89% of total VAT generated during the quarter.
• Information and communication contributed 18.77 percent, while Mining and quarrying accounted for 14.85%.
• Activities of households as employers recorded the smallest share at 0.003 percent.
• Activities of extraterritorial organisations and Water supply, sewerage, and waste management each contributed 0.03%.

**What you should know **

The NBS had earlier reported that VAT revenue stood at N2.06 trillion in Q2 2025.

• This is according to the Federation Account Allocation Committee (FAAC) data compiled by Nairametrics Research from the office of the Accountant General of the Federation (OAGF).
• Nairametrics also previously reported that VAT allocations to the Federal Government, states, and Local Government Areas rose to N7.73 trillion in 2025, up from N6.11 trillion in 2024, representing a 26.46 percent year-on-year increase.

Across the three tiers, VAT receipts grew by 26.46%, with the Federal Government receiving N1.16 trillion, States N3.77 trillion, and LGAs N0.71 trillion.

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