The manufacturing sector continued to dominate Nigeria’s Value-added Tax, VAT, performance in the first half of 2025, recording N584.63 billion and accounting for 26.6 percent of the total local VAT pool of N2.197 trillion.
This steady lead further underlines the sector’s importance to the nation’s economic stability and revenue generation.
Fresh figures from the National Bureau of Statistics, NBS, showed that aggregate VAT earnings for the first quarter of 2025 reached N2.061 trillion. The breakdown indicated that local VAT amounted to N1.102 trillion, foreign VAT contributed N454.76 billion, and import VAT generated N507.00 billion during the period.
For the second quarter, aggregate VAT revenue stood at N2.059 trillion. Local VAT collections were N1.095 trillion, foreign VAT payments totalled N459.95 billion, while import VAT brought in N508.55 billion.
These figures confirm that non-import local VAT collections for both quarters combined amounted to N2.197 trillion, excluding non-import foreign VAT and VAT from the Nigeria Customs Service.
According to the NBS, manufacturing remained the highest VAT-contributing sector in Q1’25, followed by information and communication as well as mining and quarrying. The same pattern continued in Q2’25, with manufacturing ahead of information and communication and mining and quarrying, contributing 15.04 percent.
A closer look at sectoral contributions showed that in Q1’25, manufacturing posted the highest share at 26.03 percent (N286.95 billion), followed by information and communication at 17.51 percent (N192.97 billion), and mining and quarrying at 17.02 percent (N187.59 billion). In Q2’25, manufacturing retained its top spot at 27.19 percent (N297.68 billion), with information and communication at 20.76 percent (N227.22 billion), and mining and quarrying at 15.04 percent (N164.70 billion).
Even though manufacturers continue to battle persistent inflation, unstable exchange rates, poor infrastructure—especially in electricity supply—shrinking consumer purchasing power and growing unsold inventory, all of which push up production expenses and reduce competitiveness, the sector has remained a vital pillar of Nigeria’s economic progress.
What You Should Know
The manufacturing sector’s strong showing in VAT collections highlights its essential role in Nigeria’s revenue system despite ongoing economic strain.
Inflation, unstable power supply, FX disruptions and weak consumer demand continue to weigh heavily on manufacturers, yet the sector remains a major contributor to government finances and a core driver of growth.
