National Bureau of Statistics (NBS) reports that Value Added Tax (VAT) collections reached ₦2.06 trillion in Q2 2025.
That represents a 32.15% year‑on‑year increase, compared with ₦1.56 trillion collected in Q2 2024.
On a quarter‑on‑quarter basis, however, the figure was essentially flat, decreasing slightly by about 0.03% compared with Q1 2025.
According to the NBS breakdown of VAT sources in Q2 2025:
Local VAT payments were the largest component: around ₦1.09 trillion.
Foreign VAT payments contributed roughly ₦459.95 billion.
Import‑derived VAT added around ₦508.55 billion.
By industry:
The top three sectors for VAT contributions were manufacturing (27.19%), information & communication (20.76%), and mining & quarrying (15.04%).
On growth rates (quarter-on-quarter), real estate activities saw a huge surge ( 155.21%), followed by agriculture/forestry/fishing (23.64%), and information & communication (17.75%).
Some sectors, though, recorded contractions notably human health & social work (‑68.34%), electricity/gas/steam/AC supply (‑45.20%), and water supply/waste management (‑29.36%).
The 32% increase year‑on‑year suggests improved VAT compliance, broader economic activity, or both which could signal stronger consumption, business activity, or imports.
A robust VAT intake provides the government with increased fiscal space potentially funding infrastructure, public services, or debt obligations.
The surge in certain sectors (manufacturing, ICT, mining, real estate) may reflect growth trends but the steep drop in health and utilities‑related VAT is a sign of uneven performance across sectors.
The sharp spike in real estate VAT may mean a booming property/real estate transactions market but it could also be volatile if it depends on a one-time rush rather than sustained growth.
Although the year-on-year rise is high, quarter-on-quarter growth is flat. That suggests the growth momentum may be stabilizing.
Reliance on a few high-contributing sectors (manufacturing, ICT, mining) and a big jump in real estate could make future VAT performance sensitive to sectoral downturns.
The large contractions in health and utility sectors are a concern especially given their importance to public welfare, which might reflect lower consumption or financial stress in those sectors.
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