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Analysis of Nigeria’s VAT Revenue Stability in Q2 2025
According to the latest figures from the National Bureau of Statistics (NBS), Nigeria’s Value Added Tax (VAT) revenue held steady in the second quarter of 2025, totaling ₦2.06 trillion. This amount mirrors the revenue generated in the first quarter, showing a marginal decrease of just 0.03%.
Detailed VAT Revenue Composition
The Q2 VAT revenue is segmented into three main categories: domestic VAT payments contributed ₦1.09 trillion, foreign VAT payments accounted for ₦459.95 billion, and import VAT collected at Nigerian ports added ₦508.55 billion. This distribution underscores the diverse sources fueling VAT inflows.
Sectoral Performance Highlights
Examining sector-specific growth reveals notable disparities. The real estate sector experienced an exceptional surge, expanding by 155.21% quarter-over-quarter. Agriculture, forestry, and fishing followed with a robust 23.64% increase, while the information and communication industry grew by 17.75%.
Industries Facing Declines
Conversely, certain sectors faced significant downturns. The human health and social work sector saw a steep decline of 68.34%, electricity and gas supply dropped by 45.20%, and water supply alongside waste management services decreased by 29.36%. These contractions highlight areas requiring policy attention.
Leading Contributors to VAT Revenue
Manufacturing remains the dominant contributor, accounting for 27.19% of total VAT revenue. The information and communication sector follows closely with 20.76%, and mining and quarrying contribute 15.04%. At the lower end, household activities as employers contributed a negligible 0.005%, while extraterritorial organizations and water-related services added 0.02% and 0.03%, respectively.
Year-on-Year Growth Reflects Economic Resilience
Despite the slight quarterly dip, VAT revenue in Q2 2025 surged by 32.15% compared to the same quarter in 2024. This substantial year-over-year increase signals sustained economic momentum across critical sectors, reinforcing Nigeria’s fiscal stability amid global economic uncertainties.
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