VAT collections rise to N2.28tn in Q3 2025, NBS reports 10.66% quarterly growth

Value Added Tax (VAT) collections rose sharply to N2.28 trillion in the third quarter of 2025, reflecting an increase of 10.66 per cent compared with N2.06 trillion generated in the second quarter, the National Bureau of Statistics said.

The new figures are contained in the 2025 Quarter III Sectoral VAT Distribution report which was released on the agency’s website, Tuesday. The data also shows strong year-on-year performance, with VAT revenue in Q3 2025 growing by 28.10 percent when compared to the same period in 2024.

Providing a detailed breakdown of the levy, the report shows that domestic VAT payments accounted for the largest portion at N1.12 trillion. Foreign VAT contribution reached N680.23 billion, while import VAT generated N479.79 billion in the reporting quarter.

“Value Added Tax (VAT) in Q3 2025 was N2.28 trillion, representing an increase of 10.66% quarter-on-quarter from N2.06 trillion in Q2 2025.

“Local payments amounted to N1.12 trillion, foreign VAT payments amounted to N680.23 billion, while import VAT contributed N479.79 billion in Q3 2025,” the report said.

Analysis of quarter-on-quarter sectoral performance shows that administration and support services activities recorded the fastest growth rate at 89.28 percent. Arts, entertainment and recreation activities followed with an increase of 82.49 percent, while human health and social work activities increased by 32.40 percent.

However, not all sectors recorded strengthening. According to the bureau, real estate activity experienced the sharpest contraction, falling by 51.33 percent in the quarter. Household activities as employers, as well as household activities producing undifferentiated goods and services for their own use, decreased by 36.22 percent, while other service activities decreased by 20.30 percent.

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“On the other hand, real estate activities had the lowest growth rate, namely –51.33%, followed by household activities as employers, household activities producing undifferentiated goods and services for their own use at –36.22%, and other service activities at –20.30%,” the report added.

In terms of sectoral contribution to total VAT revenues, the manufacturing sector still leads with a contribution of 25.89 percent of VAT revenues in the third quarter of 2025. The information and communications sector follows with a contribution of 18.77 percent, while the mining and quarrying sector contributes 14.85 percent.

“The top three activities with the largest shares in Q3 2025 are manufacturing at 25.89%, information and communications at 18.77%, and mining and quarrying at 14.85%.

“In contrast, household activities as employers, household activities producing undifferentiated goods and services for own use account for the lowest share with 0.003%, followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management each with 0.03%.”