Nigeria's manufacturing sector records record VAT contribution in Q1 2026

Nigeria’s manufacturing sector remitted a record N329.59 billion in Value Added Tax (VAT) in the first quarter of 2026, accounting for 29.75 % of the total N2.42 trillion VAT collected nationwide. The contribution represents a 12.82 % quarter‑on‑quarter increase from the previous quarter and a 191.74 % rise compared with the same period in 2022, when manufacturers paid just N112.97 billion.

Overall VAT collections rose 9.98 % quarter‑on‑quarter and 17.06 % year‑on‑year, with the manufacturing sector emerging as the largest contributor, followed by information and communication (20.61 % share) and mining and quarrying (12.32 %). The National Bureau of Statistics noted that household‑related activities posted the highest growth rate at 74.36 %, with arts, entertainment and recreation next at 20.91 %.

The surge underscores the expanding taxable activity of Nigeria’s industrial base and its growing importance to federal revenue, as the Nigeria Revenue Service channels the VAT proceeds to the three tiers of government through the Federation Accounts Allocation Committee.