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Lastest News Nigeria, Politics, Business, Sport, Interview
Nigeria’s manufacturing sector strengthened its position as a key source of government revenue in the first quarter of 2026, generating a combined N404.07 billion from Value Added Tax (VAT) and Company Income Tax (CIT) contributions.
Data released by the National Bureau of Statistics (NBS) showed that the sector contributed N329.59 billion in VAT and N74.48 billion in CIT during the period. The figures highlight the continued importance of the manufacturing sector to Nigeria’s non-oil revenue base despite ongoing economic and operational challenges.
According to the NBS, VAT revenue from manufacturing activities increased by 14.86 per cent year-on-year, rising from N286.95 billion in the first quarter of 2025 to N329.59 billion in Q1 2026. The sector also emerged as the largest contributor to domestic VAT collections, accounting for 29.75 per cent of the N1.11 trillion generated locally during the quarter.
The manufacturing sector has maintained a strong VAT performance over the past five quarters. After recording N286.95 billion in Q1 2025, collections rose to N297.68 billion in Q2 before easing to N290.79 billion in Q3. VAT receipts improved slightly to N292.12 billion in Q4 and then surged to N329.59 billion in the latest quarter.
Overall, the manufacturing sector generated N1.17 trillion in VAT revenue throughout 2025, compared with N803.53 billion in 2024. Total VAT collections nationwide reached N2.42 trillion in Q1 2026, representing both quarterly and annual growth.
On the corporate tax side, manufacturers contributed N74.48 billion in CIT, representing 13.82 per cent of domestic CIT revenue. However, this figure fell from N107.90 billion in Q1 2025 and N141.84 billion in Q4 2025, indicating mounting pressure on profitability due to rising production costs and a difficult business climate.
The differing VAT and CIT results suggest that while activity and consumer demand remained resilient, profit margins within the manufacturing sector faced increasing strain during the quarter.
