Kayode Ogunwale 
7.5% Vat On Mobile Banking Triggers Double-taxation Outrage
Nigeria’s Value Added Tax (VAT) revenue rose to N2.28 trillion in the third quarter of 2025, representing a 10.66 per cent quarter-on-quarter increase compared to the N2.06 trillion recorded in the second quarter of the year.
Data released by the National Bureau of Statistics (NBS) showed that the growth in VAT collections was driven by improvements in local, foreign and import-related tax payments during the period under review.
A breakdown of the figures indicates that local VAT payments accounted for the largest share at N1.12 trillion. Foreign VAT payments contributed N680.23 billion, while import VAT stood at N479.79 billion in Q3 2025.
Sectoral analysis reveals that the manufacturing sector emerged as the highest contributor to VAT revenue, generating N290.79 billion during the quarter. This was followed by information and communication, which contributed N210.78 billion, and mining and quarrying with N166.77 billion.
Public administration and defence, including compulsory social security, accounted for N117.84 billion, while financial and insurance activities generated N110.86 billion. Transportation and storage contributed N38.09 billion, and administrative and support service activities added N30.11 billion.
Other notable contributors included accommodation and food service activities at N13.24 billion, education at N10.81 billion, construction at N9.53 billion, and electricity, gas, steam and air conditioning supply at N8.68 billion. Arts, entertainment and recreation generated N7.00 billion, while human health and social work activities contributed N6.36 billion.
Agriculture, forestry and fishing recorded N5.49 billion in VAT collections, while professional, scientific and technical activities stood at N17.04 billion. Other service activities contributed N26.25 billion.
Sectors with the least contributions included real estate activities at N1.20 billion, water supply, sewerage, waste management and remediation activities at N350.16 million, activities of extraterritorial organisations and bodies at N284.20 million, and activities of households as employers at N34.68 million.
The sustained increase in VAT revenue underscores improved tax compliance and broad-based economic activity across key sectors of the economy during the third quarter of 2025.
