Nigeria’s Manufacturing Sector Tops VAT Revenue with N584.63bn in H1 2025
- The manufacturing sector contributed N584.63 billion or 26.6% to Nigeria’s VAT revenue in the first half of 2025, according to the NBS
- Local VAT collections for the period totalled N2.197 trillion, with manufacturing, information and communication, and mining making the highest contributions
- The manufacturing sector maintained its lead despite economic pressures such as inflation, FX volatility and infrastructure constraints
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Nigeria’s manufacturing industry led the country’s Value Added Tax (VAT) revenue in the first half of 2025, contributing N584.63 billion to the federal purse, according to new data from the National Bureau of Statistics (NBS).
The agency’s latest report shows that local VAT collections for the period totalled N2.197 trillion, with the manufacturing sector accounting for 26.6%, Vanguard reported.
Source: Getty Images
The NBS noted that the sector maintained its position as the biggest source of VAT revenue in both the first and second quarters of the year.
According to the figures, VAT collections in Q1 2025 stood at N2.061 trillion. Of this amount, N1.102 trillion came from local payments, N454.76 billion from foreign VAT, and N507.00 billion from import-related VAT.
The data also shows that VAT revenue in Q2 2025 amounted to N2.059 trillion. Local VAT payments contributed N1.095 trillion, while foreign and import VAT brought in N459.95 billion and N508.55 billion, respectively.
Based on the NBS breakdown, non-import local VAT receipts from Q1 and Q2 totalled N2.197 trillion.
A sector-by-sector review shows that manufacturing topped VAT contributions in Q1, followed by information and communication, and mining and quarrying. The trend continued in Q2, with the same three sectors leading revenue performance.
In Q1 2025, manufacturing contributed 26.03% (N286.95 billion), information and communication accounted for 17.51% (N192.97 billion), while mining and quarrying recorded 17.02% (N187.59 billion).
In Q2, manufacturing contributed 27.19% (N297.68 billion), information and communication brought in 20.76% (N227.22 billion), and mining and quarrying generated 15.04% (N164.70 billion).
Source: Getty Images
Despite persistent challenges such as high inflation, exchange rate volatility, poor power supply, and weak consumer demand, the NBS noted that the manufacturing sector continues to play a central role in Nigeria’s economic development.
The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, recently stated that the dividends of Nigeria’s economic reforms are becoming evident as inflation declines and the foreign exchange (FX) market stabilises.
He said:
“The foundation for a revitalised Nigeria has been laid. The journey continues, but our path is clear: disciplined policy, credible institutions, and a commitment to stability."
Nigeria's GDP growth hits 4-year high
Legit.ng earlier reported that Nigeria's Gross Domestic Product growth rate rose year-on-year in the second quarter of 2025, according to the NBS.
According to the report, the Nigerian economy improved compared to the first quarter of 2025 and the same period of 2024.
NBS noted that the performance of the GDP in the second quarter of 2025 was driven mainly by a sharp rebound in the oil sector.
Source: Legit.ng
