Nigeria records ₦2.06 Trillion VAT for Q2 2025, Driven by Manufacturing, Real Estate Surge

Abuja, November 26, 2025
The National Bureau of Statistics (NBS) has disclosed that Nigeria’s Value-Added Tax (VAT) revenue for the second quarter of 2025 reached ₦2.06 trillion, covering the period from April through June.
Of the total, domestic VAT payments contributed ₦1.09 trillion, while VAT from foreign payments added ₦459.95 billion, and import-related VAT contributed ₦508.55 billion.
Quarter-on-quarter, this Q2 figure reflects a marginal drop of 0.03 percent compared with Q1 2025, which was similarly recorded at ₦2.06 trillion.  Yet on a year-on-year basis, the Q2 2025 collections are up 32.15 percent from Q2 2024  signalling a strengthening of Nigeria’s non-oil revenue base.
The Q2 VAT report shows a wide variation in sectoral performance. The largest quarter-on-quarter growth came from the real estate sector, which surged by 155.21 percent, followed by agriculture, forestry and fishing which grew by 23.64 percent, and the information & communication sector with 17.75 percent growth.
However, not all sectors fared well. The human health and social work sector recorded a steep contraction of –68.34 percent, while electricity, gas, steam and air-conditioning supply dropped by –45.20 percent. The water supply, sewerage, waste management and remediation sector also fell by –29.36 percent.
When it comes to contributions to total VAT revenue in Q2, the top three sectors were manufacturing, information & communication, and mining & quarrying. Manufacturing alone accounted for 27.19 percent, information & communication contributed 20.76 percent, and mining & quarrying made up 15.04 percent of total VAT revenue.
At the lower end of the spectrum were sectors such as households as employers and undifferentiated household services, extraterritorial organisations, and water/waste-management contributing only between 0.005 percent and 0.03 percent each
These numbers paint a complex picture. On one hand, the strong year-on-year growth underscores improving revenue mobilisation and a strengthening VAT base which is  a positive signal for government finances, especially as non-oil revenue becomes increasingly vital. The robust performance in sectors like real estate, manufacturing, and communication suggests rising economic activity, perhaps due to increased consumption, investment, or improved compliance.
On the other hand, the sharp contractions in critical sectors such as health, utilities, sanitation, and public-service-dependent industries raise concerns. The steep drop in VAT contributions from health and social work, utilities, and waste management may reflect reduced activity or spending in those areas — a worrying trend given their importance for public welfare and sustainable development.
Moving forward, analysts and policymakers will closely monitor whether the gains in high-performing sectors can be sustained in coming quarters. Equally important will be assessing whether the underperformance in social-service and utility sectors is temporary  or a sign of deeper structural challenges that could undermine social services even if overall VAT receipts remain high.