Manufacturing VAT hits four-year high at N329.59bn

Nigeria’s manufacturing sector remitted a record N329.59bn in Value Added Tax in the first quarter of 2026, the highest quarterly contribution by the sector in four years and the largest share recorded by any economic activity during the period, according to data from the National Bureau of Statistics.

The figure rose from N292.12bn in the fourth quarter of 2025, representing a quarter-on-quarter increase of 12.82 per cent and surpassing the sector’s previous peak of N297.68bn recorded in the second quarter of 2025 by 10.72 per cent.

Manufacturing accounted for 29.75 per cent of the N2.42tn in total VAT generated in Q1 2026, making it the top contributor among all economic activities. Information and communication followed with a 20.61 per cent share, while mining and quarrying accounted for 12.32 per cent.

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Total VAT collection in Q1 2026 increased by 9.98 per cent from N2.20tn in the preceding quarter and rose 17.06 per cent year-on-year.

The NBS noted that manufacturing ranked among the fastest-growing sectors in VAT generation during the quarter, recording 12.82 per cent quarter-on-quarter growth.

A broader analysis shows that manufacturing VAT remittances have grown sharply over four years, from N112.97bn in Q1 2022 to the latest N329.59bn, a rise of 191.74 per cent. On an annual basis, collections climbed from N477.43bn in 2022 to N578.39bn in 2023, then to N803.53bn in 2024, before surging 45.30 per cent to N1.17tn in 2025.

Meanwhile, the Organised Private Sector of Nigeria, comprising the Manufacturers Association of Nigeria and other industry bodies, recently commended the Federal Government for committing to non-retroactive implementation of the Tax Acts 2025.

In a public letter signed by the OPSN leadership, the group said the government had listened to concerns raised by businesses.

“Together, we spoke with one voice, stood on common ground, and refused to yield on a matter of fundamental principle: that tax law must operate prospectively, not retroactively,” the statement read.

The group warned that retrospective implementation would have “created profound uncertainty, distorted financial reporting, frustrated investment decisions, and ultimately undermined the very reform agenda the Tax Acts 2025 seek to advance.”

It also called on the Federal Ministry of Finance and the Nigeria Revenue Service to reconfigure the TaxPro-Max and Rev360 filing platforms and grant deadline extensions to affected companies facing system-related difficulties.