The National Bureau of Statistics (NBS) has reported that Nigeria generated ₦2.28 trillion in Value Added Tax (VAT) revenue in the third quarter of 2025.

According to the NBS report released on Tuesday, the figure represents a 10.66 per cent increase compared to the ₦2.06 trillion recorded in the second quarter of 2025. On a year-on-year basis, VAT collections grew by 28.10 per cent relative to the same period in 2024.

A breakdown of the Q3 2025 revenue shows that local VAT payments contributed the largest share at ₦1.12 trillion. Foreign VAT payments accounted for ₦680.23 billion, while import VAT added ₦479.79 billion.

Sectoral analysis revealed that manufacturing remained the highest contributor to VAT revenue, accounting for 25.89 per cent of total collections. Information and communication followed with 18.77 per cent, while mining and quarrying contributed 14.85 per cent.

On the growth front, administrative and support service activities recorded the highest quarter-on-quarter expansion at 89.28 per cent. Arts, entertainment and recreation followed at 82.49 per cent, with human health and social work activities posting growth of 32.40 per cent.

Conversely, real estate activities recorded the steepest decline at –51.33 per cent, while household employer activities and related services declined by –36.22 per cent. Other service activities also contracted by –20.30 per cent.

The NBS noted that the strong performance of VAT revenue reflects expanding economic activity and improved tax compliance in key sectors. Analysts suggest that the growth trajectory could strengthen fiscal capacity if sustained.

The agency reiterated its commitment to providing transparent and timely economic data to inform policy decisions and public discourse.

VAT remains a critical revenue stream for government financing, and the latest figures underscore ongoing efforts to broaden the tax base and enhance revenue generation.