Nigeria’s combined VAT CIT revenue declined by 6.2 per cent year-on-year to N3.79 trillion in the first quarter of 2026, according to new data released by the National Bureau of Statistics (NBS).
The report showed that total revenue from Value Added Tax (VAT) and Company Income Tax (CIT) fell from N4.04 trillion recorded in the corresponding period of 2025. The decline was largely driven by a sharp drop in Company Income Tax collections, which offset gains recorded in VAT receipts during the quarter.
According to the NBS, Company Income Tax generated N1.37 trillion in Q1 2026, representing a 3.08 per cent year-on-year decline from N1.98 trillion recorded in Q1 2025.
The agency stated that domestic CIT contributed N538.91 billion, while foreign companies accounted for N828.82 billion of total CIT collections during the period. Sectoral analysis showed that Financial and Insurance Activities contributed the highest share of CIT revenue at 24.73 per cent. Mining and Quarrying followed with 16.06 per cent, while Manufacturing accounted for 13.82 per cent.
At the lower end of the spectrum, Activities of Households as Employers and Undifferentiated Goods and Services-Producing Activities for Own Use contributed only 0.01 per cent. Activities of Extraterritorial Organisations and Bodies accounted for 0.13 per cent, while Water Supply, Sewerage, Waste Management and Remediation Activities recorded 0.38 per cent.
Despite the overall decline in VAT CIT revenue, Value Added Tax collections posted significant growth during the quarter. The NBS reported that VAT revenue rose by 19.8 per cent year-on-year to N2.42 trillion from N2.02 trillion recorded in the first quarter of 2025.
On a quarter-on-quarter basis, VAT collections increased by 9.98 per cent from N2.20 trillion generated in the fourth quarter of 2025. Of the total VAT revenue, local payments contributed N1.11 trillion, foreign VAT payments accounted for N830.47 billion, while import VAT generated N477.55 billion.
The report showed that Manufacturing remained the largest contributor to VAT collections, accounting for 29.75 per cent of total revenue generated. Information and Communication followed with 20.61 per cent, while Mining and Quarrying contributed 12.32 per cent. The strong performance of these sectors helped sustain VAT growth even as CIT collections weakened during the period.
The latest figures indicate a mixed tax revenue outlook for Nigeria. While VAT collections continue to benefit from economic activity across key sectors, the decline in corporate tax receipts suggests challenges in profitability and tax contributions among businesses.
The Q1 performance highlights the growing role of consumption taxes in government revenue generation while underscoring the importance of strengthening corporate sector growth to improve overall VAT CIT revenue performance.
NBS data shows that Nigeria’s VAT CIT revenue fell to N3.79 trillion in the first quarter of 2026, primarily due to weaker Company Income Tax collections. However, strong VAT growth provided some support, with manufacturing, information and communication, and mining sectors emerging as key contributors to tax revenue during the period.
