Nigeria’s future lies in building a diversified revenue base anchored on productive economic activity, contends ARÁBÌNRIN ADÉRÓNKE
The latest Value Added Tax (VAT) report released by the National Bureau of Statistics (NBS) provides strong evidence that Nigeria’s tax and economic reforms are beginning to produce measurable results.
According to the NBS, VAT collections reached N2.42 trillion in the first quarter of 2026, representing a 17.06 per cent increase from the N2.07 trillion recorded in the same period of 2025. The figure also reflects a 9.98 per cent increase compared to the N2.20 trillion generated in the fourth quarter of 2025.
These numbers are significant because they indicate growing economic activity, improved tax compliance and stronger revenue administration. More importantly, they demonstrate that Nigeria is making progress in its long standing effort to reduce dependence on oil revenue.
A closer look at the data reveals where the growth is coming from. Of the N2.42 trillion collected in the first quarter, local VAT payments contributed N1.11 trillion, foreign VAT payments accounted for N830.47 billion, while import VAT generated N477.55 billion. The strong performance of foreign VAT highlights the increasing contribution of the digital economy and cross border transactions to government revenue.
