NBS: VAT Revenue Increases by 32% to ₦2.06trn in Q2 2025
Nigeria’s Value Added Tax (VAT) revenue for the second quarter of 2025 stood at ₦2.06 trillion, marking a 32.15 percent increase on a year-on-year basis compared to Q2 2024.
This figure was contained in the VAT Q2 2025 report released by the National Bureau of Statistics (NBS) on Tuesday in Abuja.
However, on a quarter-on-quarter basis, the report indicated a marginal decline of 0.03 percent from the ₦2.06 trillion recorded in the first quarter (Q1) of 2025.
According to the NBS, local VAT payments accounted for ₦1.09 trillion, while foreign VAT payments contributed ₦459.95 billion. Import VAT contributed ₦508.55 billion during the period under review.
Sectoral Performance
A breakdown of the report revealed that the manufacturing sector recorded the highest contribution to VAT revenue in Q2 2025, with a share of 27.19 percent. This was followed by the information and communication sector with 20.76 percent, and mining and quarrying with 15.04 percent.
Conversely, activities of households as employers recorded the least share at 0.005 percent, followed by activities of extraterritorial organisations at 0.02 percent, and water supply, sewerage, and waste management at 0.03 percent.
On a quarter-on-quarter basis, real estate activities recorded the highest growth rate at 155.21 percent, followed by agriculture, forestry, and fishing at 23.64 percent.
However, human health and social work activities saw the lowest growth rate, contracting by 68.34 percent, followed by electricity, gas, steam, and air conditioning supply with a decline of 45.20 percent.
The consistent year-on-year growth in VAT revenue reflects ongoing efforts to improve tax administration and broaden the tax base, despite economic headwinds. In the previous quarter (Q1 2025), VAT collections had also surged by 44.24 percent year-on-year.
