Revenue generated through Value Added Tax saw a substantial rise in the first half of 2025, reaching N4.12 trillion.

This represents a significant 37.7 per cent year-on-year increase from the N2.99 trillion recorded in H1’24, according to figures released by the National Bureau of Statistics.

The details were contained in the Q2’25 VAT report, which was released in Abuja. The total figure for H1’25 also showed a marginal quarter-on-quarter decline of 0.03 percent from the N2.06 trillion that was recorded in the first quarter of 2025.

A specific breakdown of the VAT revenue for the second quarter of 2025 shows the components of the collection. The report indicates that local VAT payments accounted for N1.09 trillion, foreign VAT payments contributed N459.95 billion, and import VAT payments amounted to N508.55 billion.

The analysis of growth rates by sector revealed that real estate activities recorded the highest quarter-on-quarter increase at 155.21 percent. This sector was followed by agriculture, forestry and fishing, which grew by 23.64 percent, and information and communication, which saw a growth rate of 17.75 percent.

Conversely, some sectors experienced negative growth rates in the quarter. Human health and social work activities posted the lowest growth rate at “–68.34 percent”. This was trailed by electricity, gas, steam and air conditioning supply, which saw a decline of “–45.20 percent”, and water supply, sewerage, waste management and remediation, which recorded a drop of “–29.36 percent”.

In terms of their overall contribution to the total VAT collections in the second quarter, the manufacturing sector was the largest contributor, accounting for 27.19 percent. Information and communication followed with a 20.76 percent contribution, and mining and quarrying contributed 15.04 percent.

At the lower end of the contributions, activities of households as employers recorded the least share at 0.005 percent. Extraterritorial organisations and bodies contributed 0.02 percent, while water supply, sewerage and waste management accounted for 0.03 percent of the total collections.

Comparing the second quarter of 2025 ) to the same period in the previous year, VAT revenue saw a substantial increase. On a year-on-year basis, VAT revenue increased by 32.15 percent compared to the N1.56 trillion that was generated in Q2’24.