Manufacturing Sector Leads VAT Revenue with 26.6% Share in First Half of 2025

The manufacturing industry maintained its position as Nigeria’s top Value Added Tax (VAT) contributor in the first half of 2025 (H1’25), generating N584.63 billion, which represents 26.6% of the total N2.197 trillion collected as local VAT within the period.

According to newly released data from the National Bureau of Statistics (NBS), total VAT for Q1 2025 stood at N2.061 trillion, comprising N1.102 trillion in local VAT, N454.76 billion from foreign VAT, and N507.00 billion in import VAT.

Similarly, VAT collections for Q2 2025 amounted to N2.059 trillion, with N1.095 trillion from local VAT, N459.95 billion from foreign VAT, and N508.55 billion generated through import VAT.

This brings total non-import local VAT for Q1 and Q2 combined to N2.197 trillion, excluding foreign and customs-related VAT.

The NBS data showed that manufacturing was the biggest contributor in both quarters. In Q1’25, manufacturing accounted for 26.03% (N286.95 billion), followed by information and communication at 17.51% (N192.97 billion) and mining and quarrying at 17.02% (N187.59 billion).

In Q2’25, the trend continued, with manufacturing contributing 27.19% (N297.68 billion), ahead of information and communication at 20.76% (N227.22 billion) and mining and quarrying at 15.04% (N164.70 billion).

Despite persistent challenges—including rising inflation, exchange rate instability, poor infrastructure (especially power), weak consumer spending, and large volumes of unsold inventory—the manufacturing sector remains central to Nigeria’s economic performance, the report noted.

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