Nigeria Generates N2.42tn VAT Revenue in First Quarter of 2026

Nigeria generated N2.42 trillion in Value Added Tax (VAT) revenue in the first quarter of 2026, representing significant growth both on a quarterly and yearly basis, according to new data released by the National Bureau of Statistics (NBS).

The latest Sectoral Distribution of Value Added Tax report showed that VAT collections rose by 9.98 per cent compared to the N2.20 trillion generated in the fourth quarter of 2025.

On a year-on-year basis, VAT revenue increased by 17.06 per cent from the N2.06 trillion recorded in the corresponding period of 2025.

The NBS disclosed that local VAT payments accounted for N1.11 trillion of the total collections, while foreign VAT contributed N830.47 billion and import VAT generated N477.55 billion.

Sectoral analysis showed that manufacturing remained the largest contributor, accounting for N329 billion or 29.75 per cent of total VAT collections.

The Information and Communication sector followed with N228 billion, representing 20.61 per cent, while Mining and Quarrying contributed N136 billion or 12.32 per cent.

The bureau noted that Activities of Households as Employers recorded the highest quarterly growth rate at 74.36 per cent, followed by Arts, Entertainment and Recreation at 20.91 per cent and Manufacturing at 12.82 per cent.

Conversely, Education recorded the sharpest decline at minus 31.96 per cent, followed by Public Administration and Defence at minus 31.38 per cent.

CIT Revenue Declines

In a separate report, the NBS disclosed that Company Income Tax (CIT) revenue fell to N1.37 trillion in the first quarter of 2026.

The figure represents a year-on-year decline of 31.05 per cent and an 8.08 per cent drop compared to the N1.49 trillion recorded in the fourth quarter of 2025.

According to the bureau, domestic companies contributed N538.91 billion, while foreign companies accounted for N828.82 billion.

Financial and Insurance Activities emerged as the largest contributor to CIT revenue with N133 billion, representing 24.73 per cent of total collections.

Mining and Quarrying followed with N86.5 billion or 16.06 per cent, while Manufacturing contributed N74 billion, accounting for 13.82 per cent.

The report highlighted strong growth in Water Supply, Sewerage, Waste Management and Remediation Activities, which recorded the highest quarter-on-quarter increase of 485.71 per cent.

The latest figures illustrate the continued strength of consumption-based tax collections even as corporate income tax receipts experienced a significant decline during the quarter.