Value-added tax collections rose to N2.28 trillion in the third quarter of 2025, powered in part by strong contributions from the information and communication technology sector, according to data released March 3, 2026, by the National Bureau of Statistics.
The latest figures show VAT revenue increased 10.66% from N2.06 trillion in the second quarter, signaling sustained expansion in taxable economic activity between July and September 2025. The quarterly rise underscores continued growth in non-oil revenue at a time when authorities are seeking to strengthen domestic resource mobilization.
A breakdown of the data shows that local VAT payments accounted for the largest share of total collections, contributing N1.12 trillion. Foreign VAT payments amounted to N680.23 billion, while VAT on imports generated N479.79 billion. Domestic transactions therefore continued to represent more than half of total VAT revenue during the period.
Sectoral data point to manufacturing as the largest single contributor, generating N290.79 billion in VAT payments during the quarter. However, the information and communication technology sector emerged as a key driver of overall growth, contributing N210.78 billion, the second-highest sectoral figure.
The strong ICT performance reflects continued expansion in telecommunications, digital services and data-driven businesses. The sector’s sizable contribution highlights the growing weight of technology-enabled services in the structure of Nigeria’s economy and tax base.
Mining and quarrying followed with N166.77 billion, supported by extractive industry activity. Public administration and defense, including compulsory social security, accounted for N117.84 billion, while financial and insurance activities contributed N110.86 billion.
Transportation and storage generated N38.09 billion. Administrative and support service activities contributed N30.11 billion.
Professional, scientific and technical activities recorded N17.04 billion. Accommodation and food service activities generated N13.24 billion, indicating moderate consumer activity in hospitality-related services. Education contributed N10.81 billion, while construction added N9.53 billion.
Electricity, gas, steam and air conditioning supply accounted for N8.68 billion. Arts, entertainment and recreation generated N7 billion.
Agriculture, forestry and fishing contributed N5.49 billion. Human health and social work activities recorded N6.36 billion, while real estate activities generated N1.20 billion.
At the lower end of the distribution, water supply, sewerage, waste management and remediation activities accounted for N350.16 million. Activities of extraterritorial organizations and bodies contributed N284.20 million, and activities of households as employers generated N34.68 million.
The 10.66% quarter-on-quarter rise in VAT collections provides a real-time signal of underlying consumption and transaction volumes across sectors. Because VAT is applied to goods and services at the point of consumption, increases in receipts typically reflect stronger economic activity, improved compliance or both.
The prominence of ICT in the latest data is particularly notable. As digital payments, mobile connectivity and online services expand, tax authorities have broadened coverage to include cross-border digital transactions and technology-driven platforms. The N210.78 billion contribution from information and communication places the sector firmly among the pillars of non-oil revenue generation.
Manufacturing’s leading position at N290.79 billion also suggests that domestic production and supply chains maintained momentum during the quarter, despite cost pressures and infrastructure constraints that continue to affect operators.
The data, compiled from administrative tax records for the third quarter of 2025, offer policymakers and investors insight into the composition of government revenue and the evolving structure of economic activity. The sustained rise in VAT receipts supports efforts to diversify fiscal income away from hydrocarbons and toward consumption and service-based taxation.
By combining robust contributions from manufacturing and ICT, the third-quarter figures underscore how traditional industrial output and digital services are jointly shaping the country’s tax profile.
For fiscal authorities, the quarter’s outcome signals continued traction in non-oil revenue mobilization. For markets, the expanding role of ICT within the VAT mix highlights the sector’s increasing economic relevance and its growing contribution to government coffers.