Nigeria's Q4 2025 VAT Collections Drop to N2.19 Trillion

In the fourth quarter of 2025, Nigeria's Value Added Tax (VAT) collections amounted to N2.19 trillion, representing a 3.78% decrease from the N2.28 trillion recorded in the third quarter of the same year. However, there was a year-on-year increase of 12.84%, indicating continued growth in taxable economic activities.

The data released by the National Bureau of Statistics highlights the resilience of revenue performance, suggesting improvements in tax compliance and a gradual expansion of the tax base, despite short-term fluctuations in consumption. The breakdown of Q4 2025 VAT collections shows contributions from domestic and foreign trade, with a notable strength in Nigeria's tax base despite the quarterly dip.

Sector performance varied, with some areas showing strong growth while others declined. Contributions from household employment activities were minimal, accounting for just 0.005%, while extraterritorial organizations and water supply activities contributed between 0.02% and 0.07%.

In June 2025, President Bola Tinubu introduced four bills, including the Nigeria Tax Bill and the Nigeria Revenue Service Establishment Bill.