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From Adanna Nnamani, Abuja
The Federal Government generated a total of N2.28 trillion from Value Added Tax (VAT) in the third quarter of 2025, marking a significant boost in revenue within just three months.
Latest figures released by the National Bureau of Statistics (NBS) show that the Q3 2025 VAT collection represents a 10.66 per cent increase quarter-on-quarter compared to the N2.06 trillion recorded in Q2 2025.
On a year-on-year basis, VAT revenue surged by 28.10 per cent compared to the corresponding period in 2024, underscoring improved tax performance amid ongoing fiscal reforms.
A breakdown of the figures indicates that local VAT payments accounted for the largest chunk at N1.12 trillion. Foreign VAT payments contributed N680.23 billion, while import VAT stood at N479.79 billion during the period under review.
Sectoral analysis shows that Manufacturing emerged as the highest contributor to the VAT pool, accounting for 25.89 per cent of total collections. The Information and Communication sector followed with 18.77 per cent, while Mining and Quarrying contributed 14.85 per cent.
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The data further revealed strong growth in Administrative and Support Service activities, which recorded the highest quarter-on-quarter growth rate of 89.28 per cent.
Arts, entertainment and recreation followed closely with 82.49 per cent growth, while Human health and social work activities posted a 32.40 per cent increase.
However, not all sectors recorded gains, as real estate activities experienced the sharpest decline, contracting by 51.33 per cent. Activities of households as employers and other service-related activities also posted negative growth rates of 36.22 per cent and 20.30 per cent respectively.
In terms of sectoral share, activities of households as employers recorded the lowest contribution at 0.003 per cent, followed by activities of extraterritorial organisations and water supply, sewerage and waste management, which contributed 0.03 per cent each.
The latest VAT performance highlights the growing importance of non-oil revenue sources in government financing, particularly as authorities intensify efforts to strengthen tax administration and expand the revenue base.
Analysts say sustained growth in manufacturing, ICT and mining could further enhance revenue generation in the coming quarters if macroeconomic stability and business confidence are maintained.
