Nigeria's VAT Collection Hits ₦2.42 Trillion in Q1 2026

In the first quarter of 2026, Nigeria's Value Added Tax (VAT) collection reached ₦2.42 trillion, representing a 9.98% increase compared to the previous quarter's collection of ₦2.20 trillion. This growth signifies a 17.06% year-on-year increase from the same period in 2025, according to the National Bureau of Statistics.

Analysts from Cowri Asset Management attribute this rise to improved tax administration and stronger compliance, which have bolstered the non-oil revenue sector. The VAT collection during this period was composed of ₦1.11 trillion from local VAT payments, ₦830.47 billion from foreign VAT payments, and ₦477.55 billion from import VAT contributions.

The manufacturing sector emerged as the largest contributor to VAT collection, accounting for 29.75% of total receipts, with a 12.82% quarter-on-quarter increase. This performance underscores the sector's role in Nigeria's economic diversification agenda and its significance as a major source of government revenue.