Nigeria’s Value Added Tax (VAT) collections surged to ₦2.28 trillion in the third quarter of 2025, marking a 10.66 per cent increase from the previous quarter and a 28.10 per cent rise from the same period in 2024.
According to a review of the National Bureau of Statistics (NBS) data released on Tuesday, the bulk of the revenue came from a handful of sectors, highlighting a concentration of taxable activity in the economy.
Manufacturing led the pack
Leading the charge was the manufacturing sector, which contributed ₦290.79 billion, representing 25.89 per cent of total VAT collections.
Following closely was the information and communication sector with ₦210.78 billion or 18.77 per cent, and the mining and quarrying sector, which added ₦166.77 billion or 14.85 per cent.
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Public administration and defence, compulsory social security contributed ₦117.84 billion, while financial and insurance activities added ₦110.86 billion, rounding out the top five contributors.
In stark contrast, several sectors generated minimal VAT revenue, underscoring structural gaps in the tax base.
Activities of households as employers and undifferentiated goods- and services-producing activities contributed just ₦34.68 million, representing 0.003 per cent, while activities of extraterritorial organisations and bodies added ₦284.20 million or 0.03 per cent.
Water supply, sewerage, waste management, and remediation activities also lagged with ₦350.16 million or 0.03 per cent, alongside other low-performing service sectors.
Quarter-on-quarter performance
Administrative and support service activities posted the highest growth at 89.28 per cent, followed by arts, entertainment, and recreation at 82.49 per cent, and human health and social work activities at 32.40 per cent.
On the other hand, real estate activities plummeted 51.33 per cent, with households as employers down 36.22 per cent, and other service activities falling 20.30 per cent.
A further look at the NBS data shows that local VAT payments remained the largest source, totalling N1.12 trillion, while foreign VAT contributed ₦680.23 billion, and import VAT added ₦479.79 billion.
Analysts say the concentration in a few industries makes efforts to expand the VAT base and improve compliance in lagging sectors critical for sustainable revenue growth.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
