By Progress Godfrey
Nigeria recorded a total Value Added Tax (VAT) collection of N2.06 trillion in the second quarter of 2025, according to the latest VAT Report released by the National Bureau of Statistics (NBS), which covered Q2 2025.
The Q2 figure reflects a marginal 0.03 per cent decline compared to the N2.06 trillion generated in Q1 2025.
A breakdown of the data shows that local VAT payments remained the main driver, contributing N1.09 trillion, while foreign VAT payments accounted for N459.95 billion. Import VAT receipts closed at N508.55 billion for the quarter.
The report highlighted strong sectoral performance on a quarter-on-quarter basis, with real estate activities recording the highest growth at 155.21 per cent, followed by agriculture, forestry and fishing at 23.64 per cent, and information and communication at 17.75 per cent.
“On the other hand, human health and social work activities had the lowest growth rate at –68.34 per cent, followed by electricity, gas, steam and air conditioning supply with –45.20 per cent. This was followed by Water supply, sewerage, waste management and remediation activities at –29.36 per cent,” the NBS said.
Manufacturing remained the largest contributor to VAT in Q2, accounting for 27.19 per cent, ahead of information and communication at 20.76 per cent and mining and quarrying at 15.04 per cent.
At the lower end, “activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share at 0.005 per cent. This was followed by activities of extraterritorial organisations and bodies at 0.02 per cent, and water supply, sewerage, waste management at 0.03 per cent,” the report stated.
Year-on-year, VAT collections rose 32.15 per cent compared to Q2 2024, signalling stronger consumption trends and improved administrative efficiency.
The NBS also recalled that Q1 2025 VAT stood at N2.06 trillion, representing a 6.02 per cent increase from the N1.95 trillion recorded in Q4 2024. Local payments stood at N1.10 trillion, foreign VAT payments at N454.76 billion, while import VAT reached N507.00 billion.
Q1 sectoral growth was led by electricity, gas, steam and air conditioning supply at 136.71 per cent, followed by administrative and support services at 45.24 per cent, and professional, scientific and technical activities at 39.00 per cent.
“On the other hand, activities of extraterritorial organisations and bodies had the lowest growth rate at 35.70 per cent, followed by wholesale and retail trade, repair of motor vehicles and motorcycles, and real estate activities at –14.51 per cent and –11.54 per cent, respectively,” the bureau noted.
Manufacturing also topped sectoral shares in Q1 2025 at 26.03 per cent, followed by information and communication at 17.51 per cent and mining and quarrying at 17.02 per cent.
“On the other hand, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share at 0.004 per cent. This was followed by activities of extraterritorial organisations and bodies at 0.02 per cent, and water supply, sewerage, waste management at 0.04 per cent,” the NBS said.
Year-on-year, Q1 VAT collections rose 44.24 per cent from the corresponding period in 2024.
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