Nigeria’s manufacturing sector generated N1.17 trillion in Value Added Tax (VAT) in 2025, reinforcing its position as the country’s top contributor to tax revenue, according to the National Bureau of Statistics.
The figure marks a sharp increase from N803.53 billion in 2024, highlighting the sector’s growing role in government revenue despite economic headwinds.
Data from the NBS shows consistent VAT contributions throughout the year:
- Q1: N286.95 billion
- Q2: N297.68 billion
- Q3: N290.79 billion
- Q4: N292.12 billion
The steady quarterly performance underscores the sector’s resilience amid inflation, currency volatility, and rising production costs.
Manufacturing continues to anchor Nigeria’s non-oil economy, driven by industries such as consumer goods, cement, and industrial materials.
Despite a slight dip in its share of GDP—from 8.24 per cent in 2024 to 8.05 per cent in 2025, the sector remains critical to economic diversification efforts.
Nigeria’s overall VAT collections showed mixed trends. While Q4 revenue dipped 3.78 per cent quarter-on-quarter to N2.19 trillion, total VAT still grew 12.84 per cent year-on-year.
Local VAT accounted for the largest share at N1.16 trillion, with foreign and import VAT contributing N503.13 billion and N535.73 billion respectively.
Ongoing reforms by the Federal Government of Nigeria are expected to further boost collections. These include new presumptive tax rules targeting MSMEs and broader tax administration reforms signed by President Bola Tinubu in 2025.
Despite persistent challenges, the manufacturing sector’s strong VAT performance signals its expanding influence in Nigeria’s revenue mix and long-term economic strategy.
