Nigeria's VAT Collections Surge, Boosting Non‑Oil Economic Growth

Nigeria’s value‑added tax (VAT) receipts jumped to ₦2.42 trillion in the first quarter of 2026, a 9.98% rise quarter‑on‑quarter and 17.06% year‑on‑year, according to the National Bureau of Statistics. Domestic VAT accounted for the bulk of the intake (₦1.11 trillion), with foreign VAT at ₦830.47 billion and import VAT contributing ₦477.55 billion. Manufacturing led the sectoral breakdown, supplying 29.75% of total VAT and posting a 12.82% QoQ increase, while the information‑communication sector contributed 20.61% and mining and quarrying 12.32%.

Analysts say the strong VAT performance signals resilience in Nigeria’s non‑oil economy despite high inflation, elevated interest rates and foreign‑exchange pressures. The International Monetary Fund has urged the government to broaden the VAT base further, proposing extensions to fuel and higher telecom tariffs to raise revenue. Nigerian officials have so far resisted these measures amid public opposition, preferring policies that focus on output and employment generation rather than additional taxation.