VAT revenue increased to N2.42trn, CIT drops to N1.37trn in Q1 2026 — NBS

Nigeria recorded N2.42 trillion in value-added tax (VAT) revenue in the first quarter of 2026, according to the latest sectoral distribution report released by the National Bureau of Statistics (NBS).

The figure represents a 9.98 per cent increase from the N2.20 trillion generated in the fourth quarter of 2025. On a year-on-year basis, VAT collections rose by 17.06 per cent from the N2.06 trillion recorded in the first quarter of 2025.

VAT, a consumption tax administered by the Nigeria Revenue Service (NRS), is shared among the three tiers of government through the Federation Account Allocation Committee (FAAC).

The NBS report showed that local payments accounted for N1.11 trillion of the total VAT generated in Q1 2026, while foreign VAT payments contributed N830.47 billion and import VAT added N477.55 billion.

According to the bureau, activities of households as employers and undifferentiated goods- and services-producing activities for own use recorded the highest quarter-on-quarter growth rate of 74.36 per cent. Arts, entertainment and recreation followed with 20.91 per cent, while manufacturing grew by 12.82 per cent.

In contrast, education recorded the sharpest decline at 31.96 per cent, followed by public administration and defence, compulsory social security at 31.38 per cent, and activities of extraterritorial organisations and bodies at 29.89 per cent.

Manufacturing contributed the largest share of VAT revenue in the quarter with N329 billion, accounting for 29.75 per cent of the total. Information and communication followed with N228 billion or 20.61 per cent, while mining and quarrying generated N136 billion, representing 12.32 per cent.

At the lower end, activities of households as employers and undifferentiated goods-and-services-producing activities for own use contributed 0.01 per cent, while activities of extraterritorial organisations and bodies, as well as water supply, sewerage, waste management and remediation activities, accounted for 0.02 per cent and 0.06 per cent respectively.

Meanwhile, in a separate report, the NBS said company income tax (CIT) revenue declined to N1.37 trillion in the first quarter of 2026.

The figure represents a 31.05 per cent drop compared to the same period in 2025 and an 8.08 per cent decline from the N1.49 trillion recorded in the fourth quarter of 2025.

Domestic CIT contributed N538.91 billion, while foreign CIT payments accounted for N828.82 billion during the quarter.

Financial and insurance activities generated the highest share of CIT revenue with N133 billion, representing 24.73 per cent. Mining and quarrying followed with N86.5 billion or 16.06 per cent, while manufacturing contributed N74 billion, accounting for 13.82 per cent.

The least contributions came from activities of households as employers and undifferentiated goods- and services-producing activities for own use at 0.01 per cent, followed by activities of extraterritorial organisations and bodies at 0.13 per cent, and water supply, sewerage, waste management and remediation activities at 0.38 per cent.

The report also noted that water supply, sewerage, waste management and remediation activities recorded the highest quarter-on-quarter growth rate of 485.71 per cent. This was followed by activities of households as employers and undifferentiated goods- and services-producing activities for own use, which rose by 197.04 per cent.

Agriculture, forestry and fishing posted the weakest growth rate at 73.52 per cent, while construction followed with 63.15 per cent.