MON JUNE 15 2026-theGBJournal| Nigeria’s Value Added Tax (VAT) collections rose to N2.42 trillion in the first quarter of 2026, reflecting continued strength in economic activity and tax administration despite pockets of weakness across some sectors of the economy.
Data provided by the Nigeria Revenue Service (NRS) and published by the National Bureau of Statistics (NBS) showed VAT revenue increased by 9.98% from N2.20 trillion recorded in the fourth quarter of 2025.
The figures also represented a 17.06% increase compared with the corresponding period of 2025, underscoring sustained growth in government non-oil revenue generation.
A breakdown of the collections showed that domestic VAT payments accounted for the largest share at N1.11 trillion.
Foreign VAT remittances contributed N830.47 billion, while import VAT generated N477.55 billion during the quarter, highlighting the growing importance of cross-border transactions and imports to the country’s tax base.
Sectoral performance was mixed during the period. Activities of households as employers and undifferentiated goods-and-services-producing activities for own use recorded the strongest quarter-on-quarter growth, rising 74.36%.
The arts, entertainment and recreation sector followed with a 20.91% increase, while manufacturing VAT collections expanded by 12.82%, reinforcing the sector’s position as a key contributor to government revenue.
In contrast, education recorded the sharpest decline, with VAT collections falling 31.96% from the previous quarter.
Public administration and defence, including compulsory social security activities, declined by 31.38%, while activities of extraterritorial organizations and bodies contracted by 29.89%.
Manufacturing remained the dominant contributor to VAT revenue, accounting for 29.75% of total collections in the first quarter.
Information and communication followed with a 20.61% share, reflecting continued expansion in Nigeria’s digital economy, while mining and quarrying contributed 12.32%.
At the lower end of the spectrum, activities of households as employers and own-use production activities represented just 0.01% of total VAT collections.
Activities of extraterritorial organizations and bodies, as well as water supply, sewerage, waste management and remediation activities, accounted for 0.02% and 0.06%, respectively.
The latest figures point to continued momentum in VAT receipts as authorities intensify efforts to broaden the tax net and improve compliance, providing a growing source of government revenue amid ongoing fiscal reforms and efforts to reduce reliance on oil income.
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