VAT Revenue Trends in Q2 2025
The National Bureau of Statistics (NBS) has disclosed that the aggregate Value Added Tax (VAT) rose by 32.15% year-on-year (YoY) from N1.56 trillion in the second quarter of 2024 to N2.06 trillion in the second quarter of 2025. This is according to the VAT Q2 2025 report released by NBS on Tuesday.
Further breakdown showed that local payments recorded were N1.09 trillion, while foreign VAT payments contributed N459.95 billion. Also, import VAT contributed N508.55 billion to the revenue in Q2 2025.
On sectoral contributions, the report revealed that the top three sectors with the largest shares in Q2 2025 were manufacturing at 27.19% (N560.11 billion), information and communication at 20.76% (N427.66 billion) and mining and quarrying at 15.04% (N310 billion).
Meanwhile, household activities, such as undifferentiated goods and services-producing activities, recorded the least share at 0.005%. Water supply, sewerage, waste management at 0.03% and activities of extraterritorial organisations and bodies at 0.02%.
On a quarter-on-quarter basis, VAT decreased by 0.03% to N2.061 trillion from N2.061 trillion recorded in Q1 2025. The report revealed that real estate activities recorded the highest growth rate at 155.21%, followed by agriculture, forestry, and fishing at 23.64%. Also, Information and communication at 17.75%.
On the other hand, human health and social work activities had the lowest growth rate at -68.34%, followed by electricity, gas, steam and air conditioning supply at -45.20%: water supply, sewerage, waste management and remediation activities at -29.36%.
On a positive note, NBS noted that after the removal of the fuel subsidy and unification of the exchange rates, Nigeria has recorded a consistent rise in VAT revenue. This has been witnessed since the third quarter of 2023.
VAT Performance in Q1 2025
The aggregate value-added tax recorded in the first quarter of 2025 stood at N2.061 trillion, a 44.24 % YoY increase from Q1 2024. Also, revenue recorded a 6.02% quarter-on-quarter surge to N1.95 trillion from N1.85 trillion recorded in Q4 2024.
The breakdown of accumulation payments showed that local payments recorded were N1.10 trillion, while foreign VAT payments contributed N454.76 billion. The amount received via import VAT was N507.00 billion.
On sectoral contributions, the sectors with the largest shares during the quarter were manufacturing at 26.03% (N536.28 billion) and information and communication at 17.51% (N360.88 billion). Also, Mining and quarrying at 17.02% (N350.78 billion).
On the other hand, household activities, such as undifferentiated goods and services-producing activities, recorded the least share at 0.004%. Water supply, sewerage, waste management stood at 0.02% and activities of extraterritorial organisations and bodies at 0.04%.
On a quarter-on-quarter basis, VAT increased by 6.02% from the N1.95 trillion recorded in Q4 2024. Under the same comparison, the report showed that electricity, gas, steam and air conditioning supply recorded the highest growth rate at 136.71%, followed by the activities of administrative and support service activities at 45.24%.