…As VAT dominance boosts case for targeted industrial support
Nigeria’s manufacturing sector reinforced its position as a major contributor to government revenue in the first quarter of 2026, generating the highest value-added tax (VAT) receipts of N329.5 billion, even as industry stakeholders renewed calls for stronger government support to address rising production costs and improve competitiveness.
The sectoral distribution of Value Added Tax report released by the National Bureau of Statistics (NBS) showed that manufacturing, information and communication, and mining and quarrying were the three largest contributors to the N2.42 trillion VAT collected during the quarter.
According to the report, the manufacturing sector’s VAT contribution rose from N286.9 billion recorded in the corresponding period to N329.5 billion in Q1 2026, representing a 14.86% increase.
While the figures underscore the sector’s significant contribution to public finances, industry leaders argue that manufacturers continue to shoulder enormous structural costs that undermine their competitiveness against imported goods.
