Nigeria Sees Strong VAT Growth as Collections Reach N2.28 Trillion

Nigeria’s Value Added Tax (VAT) receipts rose significantly in the third quarter of 2025, hitting N2.28 trillion. This represents a notable increase compared with the previous quarter, reflecting stronger economic activity and improved tax compliance.

The quarter‑on‑quarter growth indicates that VAT revenue rose by around 10.66 per cent compared with the second quarter of the year, driven by consumer spending, business services, and cross‑border transactions.

A breakdown of the figures shows contributions from local payments, foreign transactions, and import-related receipts. Analysts say that the combination of domestic consumption and trade activity helped push revenue higher, even as some sectors had uneven performance.

Experts believe this steady growth in VAT collections is a positive sign for Nigeria’s fiscal health, supporting efforts to diversify government revenue beyond oil and strengthen non‑oil tax streams vital for funding public services and infrastructure.