Value Added Tax revenue in Nigeria rose by 34 per cent to ₦6.4 trillion in the nine months ending December 2025, the Federal Inland Revenue Service said on Wednesday, compared with the same period the previous year.

Value Added Tax is a consumption tax imposed on goods and services at each stage of production and distribution.

In Nigeria, the VAT rate is set by law, and collections contribute to government revenues used for public services and development programmes.

The FIRS is responsible for assessing, collecting and accounting for VAT and other federal taxes.

In a statement, the FIRS said VAT revenue grew to ₦6.4 trillion in the nine months to December 2025, up from ₦4.8 trillion recorded in the corresponding period of the previous year.

The agency said the increase comprised collections from imported goods and from domestic goods and services.

The FIRS attributed the growth partly to improvements in compliance among taxpayers and intensified enforcement measures, which boosted the volume of VAT remitted to the federal government’s coffers.

The statement said VAT on imported goods accounted for a significant portion of the total revenue, alongside collections on domestic transactions.

The reported increase in VAT revenue signals stronger tax inflows for the federal government in the reviewed period.

Revenue trends will inform fiscal planning and budgeting for subsequent fiscal years as authorities monitor tax performance and compliance.