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Nigeria's VAT and CIT Revenue Soars in 9 Months, Fueling Non-Oil Growth

VAT revenue jumped 34% to N6.4trn, and CIT surged 48% to N7.72trn in 9M'25.

Economy
NGN Market

Written by NGN Market

·3 min read
Nigeria's VAT and CIT Revenue Soars in 9 Months, Fueling Non-Oil Growth

Key Highlights

  • VAT revenue rose by 34 percent to N6.4 trillion in the first nine months of 2025.
  • Company Income Tax (CIT) collections surged by 48 percent to N7.72 trillion in the same period.
  • VAT declined marginally by 1.4 percent in Q2'25 but rebounded 10.66 percent in Q3'25.
  • CIT collections showed consistent quarterly growth, increasing by 5.7 percent in Q3'25.
  • Administrative and Support Services saw the highest QoQ VAT growth at 89.28 percent.

Nigeria's fiscal performance received a significant boost in the first nine months of 2025, with Value Added Tax (VAT) and Company Income Tax (CIT) revenues demonstrating robust year-on-year growth. This surge highlights a strengthening non-oil revenue base and improved government revenue mobilization capabilities, according to data from the National Bureau of Statistics (NBS).

VAT collections experienced a substantial increase of 34 percent, climbing to N6.4 trillion in the first nine months of 2025 (9M'25) from N4.77 trillion in the corresponding period of 2024. While the second quarter of 2025 (Q2'25) saw a slight dip of 1.4 percent in VAT, falling to N2.03 trillion from N2.06 trillion in Q1'25, collections rebounded strongly in Q3'25. This recovery saw a 10.66 percent quarter-on-quarter (QoQ) increase, bringing the total to N2.28 trillion. On a year-on-year (YoY) basis, VAT in Q3'25 grew by an impressive 28.1 percent.

The breakdown of VAT collections in Q3'25 shows local payments contributing N1.12 trillion, foreign VAT payments amounting to N680.23 billion, and import VAT standing at N479.79 billion. Sectorally, Administrative and Support Services led the pack with the highest QoQ growth at 89.28 percent, followed by Arts, Entertainment and Recreation (82.49 percent) and Human Health and Social Work (32.4 percent). Conversely, Real Estate experienced the sharpest decline at –51.33 percent. Manufacturing remained a dominant sector, contributing 25.89 percent to VAT collections, trailed by Information and Communication (18.77 percent) and Mining and Quarrying (14.85 percent).

In parallel, Company Income Tax (CIT) collections recorded an even more striking surge, growing by 48 percent to N7.72 trillion in 9M'25, up from N5.22 trillion in 9M'24. Quarterly data reveals a consistent upward trend for CIT. Collections stood at N1.98 trillion in Q1'25, surged by 40 percent to N2.78 trillion in Q2'25, and further increased by 5.7 percent to N2.96 trillion in Q3'25. The Q3 figure represented a significant 67.19 percent YoY rise.

A further analysis of CIT in Q3'25 indicates that domestic CIT payments totalled N1.21 trillion, while foreign CIT payments accounted for a substantial N1.75 trillion, underscoring the significant contribution of foreign-sourced earnings to the nation's tax revenue. This strong performance in both VAT and CIT underscores the growing resilience of Nigeria's non-oil revenue streams and points towards enhanced fiscal capacity for the government.

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