By Boluwatife Oshadiya | March 4, 2026
Key Points
- Nigeria records ₦2.28 trillion in VAT revenue in Q3 2025, up 10.66% quarter-on-quarter
Manufacturing, ICT, and mining lead sectoral contributions
- Real estate and household activities post sharp declines
Main Story
Nigeria’s Value Added Tax (VAT) revenue rose to ₦2.28 trillion in the third quarter of 2025, representing a 10.66 percent increase from ₦2.06 trillion recorded in Q2 2025, according to the latest report from the National Bureau of Statistics.
The figures were disclosed in the Sectorial Distribution of VAT Q3 2025 report published on the NBS website on Tuesday. On a year-on-year basis, VAT collections increased by 28.10 percent compared to Q3 2024.
A breakdown of the Q3 2025 figure shows local VAT payments accounted for ₦1.12 trillion, foreign VAT payments contributed ₦680.23 billion, while import VAT generated ₦479.79 billion.
The NBS stated that administrative and support service activities recorded the highest quarter-on-quarter growth rate at 89.28 percent. Arts, entertainment and recreation followed at 82.49 percent, while human health and social work activities posted 32.40 percent growth.
Conversely, real estate activities recorded the steepest contraction at –51.33 percent. Activities of households as employers and undifferentiated goods- and services-producing activities for own use declined by –36.22 percent, while other service activities fell by –20.30 percent.
In terms of sectoral contributions, manufacturing led with 25.89 percent of total VAT in Q3 2025. Information and communication accounted for 18.77 percent, while mining and quarrying contributed 14.85 percent.
At the lower end, activities of households as employers recorded just 0.003 percent share. Activities of extraterritorial organisations and water supply, sewerage and waste management each accounted for 0.03 percent.
What’s Being Said
The NBS report stated, “Value Added Tax (VAT) in Q3 2025 was ₦2.28 trillion, showing an increase of 10.66% on a quarter-on-quarter basis from ₦2.06 trillion in Q2 2025.”
It added, “Local payments stood at ₦1.12 trillion, foreign VAT payments were ₦680.23 billion, while import VAT contributed ₦479.79 billion in Q3 2025.”
What’s Next
- Analysts will monitor Q4 2025 VAT performance for indications of sustained consumption growth
- Sectoral trends, particularly in real estate, may influence fiscal policy discussions
- The Federal Government’s revenue framework for 2026 will likely factor in VAT growth trajectory
The Bottom Line: The Q3 2025 VAT data signals resilient tax collection momentum despite sectoral disparities. While manufacturing and ICT remain fiscal anchors, the sharp contraction in real estate highlights uneven recovery across Nigeria’s broader economy.
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