Nigeria’s foreign Value Added Tax (VAT) collections recorded a significant increase in the first quarter of 2026, rising to ₦830.47 billion. This represents an 83% year-on-year growth compared to the amount collected during the same period in 2025.
The increase reflects stronger tax compliance by foreign companies operating or providing services to Nigerian consumers, as well as improved efforts by tax authorities to capture revenue from cross-border transactions and the growing digital economy.
The foreign VAT collection was part of Nigeria’s total VAT revenue of ₦2.42 trillion recorded in Q1 2026, showing continued growth in the country’s non-oil revenue generation efforts.
A breakdown of the VAT performance showed contributions from different sources, including local VAT payments, foreign VAT payments, and import VAT. The rise in foreign VAT highlights the increasing role of international businesses, digital services, and global transactions in Nigeria’s tax revenue system.
The growth also points to the impact of improved tax administration, compliance monitoring, and expansion of the tax base as the government continues to strengthen revenue mobilisation.
With the continued growth of cross-border business activities, foreign VAT is expected to remain an important source of revenue for Nigeria’s economy.
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