Manufacturing, information and communication technology (ICT), and mining and quarrying have become Nigeria’s leading sources of Value Added Tax (VAT) revenue, according to recent data from the National Bureau of Statistics (NBS).
Other key contributors to VAT revenues include public administration and defence, as well as financial services and wholesale and retail trade.
A report by FBNQuest highlights a remarkable 88% year-on-year increase in VAT revenue, with a total of NGN4.8 trillion collected over the first nine months of 2024, doubling the NGN2.4 trillion collected in the same period of 2023.
The sequential rise in VAT collection was driven by increases across all revenue streams. Domestic (non-import) VAT accounted for 52% of the total, with receipts rising to NGN922.9 billion from NGN792.6 billion in the previous quarter.

Foreign (non-import) VAT and import VAT, contributing 25% and 23% of total receipts respectively, also saw significant growth. Foreign VAT increased by 13% quarter-on-quarter to NGN448.9 billion, while import VAT grew by 10% to NGN410 billion.
The manufacturing sector emerged as the largest VAT revenue generator, contributing NGN205 billion during the quarter. The ICT sector followed closely with NGN192.8 billion, while mining and quarrying added NGN174.4 billion. Public administration and defence rounded out the top contributors, generating NGN95.9 billion.
The impressive expansion in VAT revenue has been attributed to exchange rate gains and improved tax administration. However, despite these gains, Nigeria’s revenue-to-GDP ratio remains low at 7–9%, lagging behind other emerging economies.
To address this, the government is implementing tax reforms aimed at broadening the tax base, reducing tax expenditures, and further improving VAT revenue collection. These measures are expected to boost fiscal revenues and improve the country’s revenue-to-GDP ratio over time.
In Q3 2024, Nigeria’s gross VAT collections increased by 14% quarter-on-quarter, reaching NGN1.8 trillion.