Nigeria recorded robust growth in non-oil tax revenues during the first nine months of 2025, driven by strong gains in Value Added Tax (VAT) and Company Income Tax (CIT).
Data released by the National Bureau of Statistics (NBS) show that VAT collections rose by 34 per cent to N6.4 trillion in 9M 2025, up from N4.77 trillion in the corresponding period of 2024.
On a quarterly basis, VAT performance showed minor fluctuations but maintained an upward trajectory. Collections dipped slightly by 1.4 per cent to N2.03 trillion in Q2 2025 from N2.06 trillion in Q1. However, revenue rebounded in Q3, increasing by 10.66 per cent quarter-on-quarter to N2.28 trillion. Year-on-year, VAT in Q3 expanded by 28.1 per cent.
A breakdown of Q3 figures indicates that locally generated VAT contributed N1.12 trillion, foreign VAT accounted for N680.23 billion, while import VAT stood at N479.79 billion.
Sectoral analysis revealed that Administrative and Support Services recorded the highest quarter-on-quarter growth at 89.28 per cent. Arts, Entertainment and Recreation followed with 82.49 per cent growth, while Human Health and Social Work activities rose by 32.4 per cent. Conversely, the Real Estate sector experienced the steepest contraction, declining by 51.33 per cent. In terms of contribution, Manufacturing led with 25.89 per cent of total VAT, followed by Information and Communication at 18.77 per cent and Mining and Quarrying at 14.85 per cent.
Company Income Tax collections also recorded substantial improvement, rising by 48 per cent to N7.72 trillion in 9M 2025, compared to N5.22 trillion in 9M 2024.
Quarterly data show that CIT revenue stood at N1.98 trillion in Q1 2025, surged by 40 per cent to N2.78 trillion in Q2, and increased further by 5.7 per cent to N2.96 trillion in Q3. The Q3 figure represented a 67.19 per cent year-on-year increase.
Further breakdown shows that domestic CIT payments in Q3 totalled N1.21 trillion, while foreign CIT payments reached N1.75 trillion, underscoring the significant contribution of foreign-sourced earnings to overall tax revenue.