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Manufacturing Emerges as Key Tax Driver as Nigeria’s Non-Oil Revenue Strengthens in 2025
Manufacturing tax contributions rose sharply in 2025, hitting N1.17tn VAT and N881bn CIT, reinforcing Nigeria’s non-oil revenue base.
Nigeria’s manufacturing sector strengthened its position in the country’s fiscal structure in 2025, posting substantial growth in both Value Added Tax (VAT) and Company Income Tax (CIT) contributions.
Figures from the National Bureau of Statistics (NBS) show that the sector generated N1.17 trillion in VAT, a 45.61 per cent rise from N803.53 billion recorded in 2024, while CIT rose to N881.29 billion, reflecting a 32.83 per cent increase from the previous year.
The growth underscores the sector’s increasing importance in government revenue and Nigeria’s broader industrialisation drive.
VAT inflows from manufacturing remained stable across quarters, with N286.95 billion in Q1 2025, N297.68 billion in Q2, N290.79 billion in Q3, and N292.12 billion in Q4, suggesting steady consumption and production activity.
CIT performance, however, showed volatility. Contributions rose from N107.90 billion in Q1 to a peak of N360.20 billion in Q2, before declining to N271.34 billion in Q3 and N141.84 billion in Q4, reflecting broader macroeconomic pressures.
Overall CIT collections in 2025 reached N9.218 trillion, despite a steep quarterly drop of 49.81 per cent in Q4, from N2.96 trillion in Q3 to N1.49 trillion, though still higher year-on-year by 13.38 per cent.
The trend highlights both resilience and vulnerability within the sector, as manufacturing continues to play a central role in Nigeria’s push to diversify away from oil dependence.
Sub-sectors such as cement, consumer goods, and industrial materials were key contributors to revenue expansion.
However, industry operators remain constrained by high energy costs, foreign exchange instability, and infrastructure gaps, which continue to shape quarterly performance.
Despite these challenges, the sector’s rising tax contributions signal sustained economic relevance and growing fiscal dependence on manufacturing activity in Nigeria’s non-oil economy.
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