By theG&Journal
WED MAR 04 2026-theGBJournal| Nigeria’s Value Added Tax (VAT) collection surged to N2.28 trillion in the third quarter of 2026, an increase of 10.66% on a q/q basis from N2.06 trillion in Q2 2025, underscoring the resilience of consumer spending and improved tax administration despite persistent macroeconomic headwinds.
The latest figures, published Tuesday by the National Bureau of Statistics (NBS) point to sustained momentum in non-oil revenue mobilisation, offering fiscal authorities a stronger buffer amid ongoing reforms.
The robust VAT outturn reflects broad-based activity across key sectors of the economy, with manufacturing, telecoms, financial services and trade contributing significantly to the revenue pool.
Local payments stood at N1.12 trillion, Foreign VAT Payments were N680.23 billion, while import VAT contributed N479.79 billion in Q3 2025.
On a quarter-on-quarter basis, Administrative and support service activities recorded the highest growth rate with 89.28%; followed by Arts, entertainment and recreation with 82.49%; and Human health and social work activities with 32.40%.
On the other hand, Real estate activities had the lowest growth rate with –51.33%, followed by Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with –36.22%; and Other service activities with –20.30%.
In terms of sectoral contributions, the top three activities with the largest shares in Q3 2025 were Manufacturing with 25.89%; Information and communication with 18.77%; and Mining and quarrying with 14.85%.
Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the lowest share with 0.003%, followed by activities of extraterritorial organizations and bodies; and Water supply, sewerage, waste management with 0.03% each.
However, on a year-on-year basis, VAT collections in Q3 2025 increased by 28.10% from Q3 2024.
Analysts say the performance also signals tighter compliance measures and digital monitoring by tax authorities, which have expanded the tax net and reduced leakages.
With oil revenues still vulnerable to global price swings, the strong Q3 VAT performance provides a critical boost to government finances and fiscal consolidation efforts.
It further strengthens the case for continued structural reforms aimed at diversifying revenue sources and stabilising Nigeria’s public finances.
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