Nigeria's Q1 2026 VAT Revenue Surges 17% to N2.42 Trillion

Nigeria's Value Added Tax (VAT) collections jumped 17.06% year‑on‑year to N2.42 trillion in the first quarter of 2026, according to the National Bureau of Statistics. The figure also rose 9.98% quarter‑on‑quarter from the previous three‑month period. Manufacturing contributed the largest share (about 30% of total VAT), followed by the information and communication sector (≈21%) and mining and quarrying (≈12%). Fastest‑growing sectors were household services (+74.36% QoQ), arts, entertainment and recreation (+20.91%) and manufacturing (+12.82%). Declines were recorded in education (‑31.96%), public administration and defence (‑31.38%) and extraterritorial organisations (‑29.89%). The increase reflects stronger tax compliance after reforms signed by President Bola Tinubu in June 2025 and enacted in January 2026, as well as new presumptive tax rules for MSMEs introduced in March 2026. Officials say the growth strengthens Nigeria's non‑oil revenue base and supports fiscal stability while the economy diversifies away from crude‑oil dependence.