VAT Revenue Increases to N2.42trn in First Quarter of 2026

• Nigeria’s VAT revenue rose to N2.42 trillion in Q1 2026, up 9.98% quarter-on-quarter and 17.06% year-on-year
• The breakdown shows local VAT at N1.11 trillion, foreign VAT at N830.47 billion, and import VAT at N477.55 billion
• Manufacturing, ICT, and mining led sectoral contributions, while education and public administration

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The National Bureau of Statistics (NBS) has revealed that Nigeria's Value Added Tax (VAT) revenue rose to N2.42 trillion in the first quarter of 2026, representing a 9.98% increase from the N2.20 trillion recorded in Q4 2025.

This was disclosed in the bureau's latest Sectoral Distribution of VAT report released on June 11, 2026. According to the report, total VAT collections in Q1 2026 stood at N2.42 trillion, driven by contributions from local, foreign, and import-related payments.

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A value-added tax (VAT) is a consumption tax collected in stages as goods and services are produced and sold.

Breakdown of VAT revenue

Local payments accounted for N1.11 trillion, while foreign VAT payments stood at N830.47 billion. Import VAT contributed N477.55 billion during the period.

On a sectoral growth basis, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate at 74.36%.

This was followed by arts, entertainment and recreation at 20.91%, and manufacturing at 12.82%. Conversely, education recorded the weakest performance with a decline of 31.96%, followed by public administration and defence, compulsory social security at 31.38%, and activities of extraterritorial organisations and bodies at 29.89%.

Manufacturing emerged as the largest contributor to Nigeria’s Value Added Tax (VAT) in the first quarter of 2026, accounting for 29.75% of total collections, according to sectoral data.

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This was followed by information and communication at 20.61%, while mining and quarrying contributed 12.32% during the period under review.

At the lower end of the ranking, activities of households as employers recorded a marginal share of 0.01%. Activities of extraterritorial organisations and bodies, as well as water supply, sewerage, waste management and remediation activities, contributed 0.02% and 0.06%, respectively.

Meanwhile, on a year-on-year basis, total VAT collections in Q1 2026 rose by 17.06% compared to the corresponding period in 2025, reflecting continued growth in consumption-driven tax revenue across key sectors of the economy.

Top 10 VAT-Generating Sectors in Q1 2026

1. Manufacturing: N329.59bn
2. Information and Communication: N228.41bn
3. Mining and Quarrying: N136.49bn
4. Financial and Insurance Activities: N113.63bn
5. Public Administration & Defence: N88.22bn
6. Wholesale & Retail Trade: N55.29bn
7. Transportation & Storage: N29.96bn
8. Other Service Activities: N28.54bn
9. Administrative & Support Services: N19.81bn
10. Professional, Scientific & Technical Activities: N15.34bn

NRS announces mandatory tax ID for all

Earlier, Legit.ng reported that the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have announced a new Taxpayer Identification (Tax ID) system to improve tax administration, enhance transparency and unify taxpayer information in Nigeria.

This was disclosed in a joint public notice issued on May 19, 2026, citing Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which mandates all taxable persons in Nigeria to be identified through a Tax ID.

Source: Legit.ng