Manufacturers remit record N330bn VAT in three months

Nigeria's manufacturing sector achieved a record N329.59 billion in Value Added Tax (VAT) remittances in the first quarter of 2026. This figure represents the highest quarterly VAT contribution from the sector in four years and the largest share of any economic activity during that period, according to data from the National Bureau of Statistics (NBS).

The latest collection shows a substantial increase from previous periods. VAT collections from manufacturing rose by 12.82 percent quarter-on-quarter, from N292.12 billion in the fourth quarter of 2025 to N329.59 billion in Q1 2026. This surpasses the sector's previous peak of N297.68 billion recorded in the second quarter of 2025 by 10.72 percent. Compared to the N112.97 billion collected in the first quarter of 2022, the current remittance has surged by 191.74 percent.

Historical data reveals a consistent upward trend in VAT remittances from the manufacturing sector over the past four years. After generating N477.43 billion in VAT in 2022, remittances grew by 21.15 percent to N578.39 billion in 2023. The growth accelerated in 2024 with a 38.92 percent increase to N803.53 billion, followed by a 45.30 percent surge in 2025, reaching N1.17 trillion.

The Q1 2026 remittance of N329.59 billion not only set a new quarterly record but also significantly exceeded the average quarterly VAT remittance from manufacturing between Q1 2022 and Q1 2026, which stood at N197.44 billion. This latest contribution is nearly three times the amount remitted in Q1 2022, reflecting sustained expansion in taxable economic activity. Manufacturing accounted for 29.75 percent of the total N2.42 trillion VAT generated in Q1 2026, making it the largest contributor among all economic activities, ahead of information and communication (20.61 percent) and mining and quarrying (12.32 percent).