The manufacturing sector emerged as the top contributor to Nigeria’s Value-Added Tax (VAT) collections in the first half of 2025 (H1’25), accounting for N584.63 billion, or 26.6% of the total local VAT of N2.197 trillion. This underscores the sector’s vital role in driving the country’s economic development.

According to the National Bureau of Statistics (NBS), total VAT in Q1’25 amounted to N2.061 trillion, with local VAT contributing N1.102 trillion, foreign VAT N454.76 billion, and import VAT N507 billion. In Q2’25, total VAT recorded N2.059 trillion, with local VAT at N1.095 trillion, foreign VAT N459.95 billion, and import VAT N508.55 billion. Non-import local VAT collections for H1’25 therefore totaled N2.197 trillion, excluding foreign and import VAT.

Sectoral analysis revealed that manufacturing consistently topped VAT contributions in both quarters. In Q1’25, manufacturing contributed 26.03% (N286.95 billion), followed by information and communication at 17.51% (N192.97 billion), and mining and quarrying at 17.02% (N187.59 billion). In Q2’25, manufacturing’s contribution rose to 27.19% (N297.68 billion), with information and communication at 20.76% (N227.22 billion) and mining and quarrying at 15.04% (N164.70 billion).

Despite challenges such as high inflation, foreign exchange volatility, inadequate infrastructure—especially power supply—weakening purchasing power, and backlog of unsold inventory, the manufacturing sector has remained a key driver of Nigeria’s economic growth, sustaining VAT revenue and supporting local production.