Nigeria’s manufacturing sector contributed N329.59 billion in Value Added Tax (VAT) revenue in the first quarter of 2026, maintaining its position as one of the country’s largest sources of non-oil tax receipts despite a slight decline in its share of economic output.
- +Manufacturing sector contributes N329.59 billion to VAT revenue in Q1 2026
Data from the National Bureau of Statistics (NBS) showed that VAT generated from manufacturing activities increased from N286.95 billion recorded in the corresponding period of 2025 and surpassed the quarterly contributions posted throughout last year.
Data from the National Bureau of Statistics (NBS) showed that VAT generated from manufacturing activities increased from N286.95 billion recorded in the corresponding period of 2025 and surpassed the quarterly contributions posted throughout last year.
The latest performance comes as Nigeria’s economy expanded by 3.89% year-on-year in the first quarter of 2026, while the manufacturing sector accounted for 9.57% of real Gross Domestic Product (GDP).
Manufacturing VAT collections have remained resilient over the past five quarters, reflecting sustained production and consumption activities across the sector.
Total VAT contributions from the manufacturing sector reached N1.17 trillion in 2025, compared with N803.53 billion recorded in 2024.
The Q1 2026 figure represents an increase of about 14.86% compared to the N286.95 billion generated in the corresponding quarter of 2025.
The data highlights the manufacturing sector’s continued importance to Nigeria’s tax revenue base despite prevailing economic challenges.
While VAT collections from manufacturing increased, the sector’s contribution to the overall economy recorded a slight year-on-year decline.
The increase in VAT receipts may also reflect stronger consumer demand, improved tax compliance and the expansion of formal sector activities.
Nigeria has continued to prioritise manufacturing as part of broader efforts to diversify the economy away from oil dependence.
Recent policy reforms aimed at improving the business environment and enhancing access to finance are expected to support industrial growth.
Recently, the Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s economy cannot achieve durable structural transformation without a stronger manufacturing base.
The CPPE expressed concern over the 15.30% contraction recorded in the electricity and gas sector, describing it as the sharpest decline in recent years.
According to the organisation, the decline reflects persistent structural weaknesses across power generation, transmission, distribution, sector liquidity, and governance.
