Nigeria recorded mixed tax performance in the fourth quarter of 2025, as Value Added Tax (VAT) collections remained relatively stable while Company Income Tax (CIT) revenue declined sharply.
This is according to data released by the National Bureau of Statistics (NBS).
VAT revenue stood at N2.19 trillion in Q4, representing a 3.78 per cent drop from N2.28 trillion recorded in the previous quarter, but showing a 12.84 per cent increase year-on-year.
The figures point to resilient consumer spending and improved tax compliance despite prevailing economic pressures.
A breakdown of VAT sources showed that domestic VAT contributed N1.16 trillion, while foreign VAT and import VAT accounted for N503.13 billion and N535.73 billion respectively.
Sectoral performance revealed strong growth in water supply, sewerage, waste management and remediation services, which rose by 142 per cent. This was followed by real estate at 62.16 per cent and household-related activities at 54.36 per cent.
However, some sectors recorded declines, including administrative and support services, which fell by 23.33 per cent, extraterritorial organisations by 15.66 per cent, and agriculture, forestry and fishing by 12.01 per cent.
Manufacturing remained the largest contributor to VAT with 25.23 per cent, followed by information and communication at 18.89 per cent, and mining and quarrying at 14.50 per cent.
In contrast, CIT revenue dropped significantly to N1.49 trillion in Q4, marking a 49.81 per cent decline from N2.96 trillion in Q3. Despite the steep quarterly fall, the figure represents a 13.38 per cent increase compared to the same period in 2024.
Domestic CIT payments stood at N819.83 billion, while foreign contributions totalled N668.21 billion.
Sectoral data showed that extraterritorial organisations recorded the highest growth in CIT at 75.15 per cent, followed by education at 54.20 per cent and real estate at 27.25 per cent.
On the downside, accommodation and food services declined by 67.11 per cent, households as employers fell by 63.49 per cent, and mining and quarrying dropped by 49.63 per cent.
Financial and insurance activities emerged as the top contributors to CIT at 18.17 per cent, followed by manufacturing at 17.30 per cent and mining and quarrying at 15.04 per cent.
The contrasting trends between VAT and CIT reflect a divergence in the broader economy, with consumer activity holding up while corporate earnings face mounting pressure amid rising costs and sector-specific challenges.
Analysts say the development underscores the need for balanced fiscal policies to sustain economic growth, improve the business climate, and ensure revenue stability.
