Nigeria’s manufacturing sector contributed a total of N1.17 trillion in Value Added Tax (VAT) in 2025, according to data released by the National Bureau of Statistics (NBS). This figure represents a significant increase from the N803.53 billion recorded in 2024, demonstrating the sector’s growing importance to government revenue.

The latest data highlights the resilience of the manufacturing sector despite prevailing economic challenges. The strong performance comes amid broader fluctuations in Nigeria’s tax environment, with the sector maintaining its position as the largest contributor to VAT revenue.

The NBS data shows that VAT contributions from the manufacturing sector remained relatively stable throughout 2025. The sector generated N286.95 billion in Q1, rising slightly to N297.68 billion in Q2. Contributions moderated to N290.79 billion in Q3 before increasing to N292.12 billion in Q4. The total N1.17 trillion marks a sharp increase from N803.53 billion recorded in 2024.

In 2024, quarterly contributions ranged from N177.17 billion in Q1 to N237.52 billion in Q4, reflecting a steady upward trend carried into 2025. This consistent performance demonstrates the sector’s ability to sustain revenue generation despite macroeconomic pressures.

In February, Nairametrics reported that Nigeria’s manufacturing sector accounted for 8.05% of real GDP in 2025, down from 8.24% recorded in 2024. The manufacturing sector has continued to strengthen its position as a key driver of Nigeria’s non-oil economy. Industries such as consumer goods, cement, and industrial materials have played a major role in boosting output and revenue.

The sector remains central to Nigeria’s economic diversification efforts, reducing reliance on oil revenues. Despite these gains, manufacturers continue to face challenges, including high production costs.