Manufacturing sector paid N329.59bn to FG as VAT; company income tax net N1.37trn in Q1 2026—NBS

Nigeria’s struggling manufacturing sector paid N329.59 billion in Value Added Tax (VAT) to the federation account in the first quarter of 2026 just as the nation’s aggregate Company Income Tax (CIT) for the first quarter of 2026 is reported to be N1.37 trillion.

The figure is contained in the NBS Company Income Tax (CIT) Q1 2026 Report.

According to the report, the figure shows an 8.08 per cent decrease on a quarter-on-quarter basis from N1.49 trillion recorded in Q4 2025.
The report said that domestic CIT received was N538.91 billion, while foreign CIT payment was N828.82 billion in Q1 2026.
It said that on a quarter-on-quarter basis, water supply, sewage, waste management and remediation activities recorded the highest growth rate with 485.71 per cent.

The report said this was followed by activities of households as employers, undifferentiated goods and services producing activities of households for own use at 197.04 per cent.

“On the other hand, agriculture, forestry and fishing recorded the least growth rate with 73.52 per cent, followed by construction with -63.15 per cent,” the report added.

In terms of sectoral contributions, the report showed that the top three activities with the highest contribution in Q1 2026 were financial and insurance activities at 24.73 per cent, and mining and quarrying at 16.06 per cent.

It said that, on the other hand, the activities of households as employers, undifferentiated goods and services producing activities of households for own use recorded the least share with 0.01 per cent.

This was followed by activities of extraterritorial organisations and bodies at 0.13 per cent, and water supply, sewage, waste management, and remediation activities

Data released by the National Bureau of Statistics (NBS) showed that VAT generated from manufacturing activities rose from N286.95 billion recorded in the corresponding period of 2025 and surpassing the quarterly contributions recorded in 2025.

The report, however, said that, on a year-on-year basis, CIT collections in Q1 2026 decreased by 31.05 per cent from Q1 2025. 

The latest performance is coming on the heels of the Nigeria’s expanding economy by 3.89% year-on-year in the first quarter of 2026, while the manufacturing sector accounted for 9.57% of real Gross Domestic Product (GDP).

Manufacturing VAT collections have remained resilient over the past five quarters, reflecting sustained production and consumption activities across the sector.

Manufacturing VAT contribution to the federation account as non oil earnings stood at N286.95 billion in Q1 2025.

Collections increased to N297.68 billion in Q2 2025 and N290.79 billion in Q3 2025. The sector generated N292.12 billion in Q4 2025 before rising to N329.59 billion in Q1 2026.

Total VAT contributions from the manufacturing sector reached N1.17 trillion in 2025, compared with N803.53 billion recorded in 2024.

The Q1 2026 figure represents an increase of about 14.86% compared to the N286.95 billion generated in the corresponding quarter of 2025.

The data highlights the manufacturing sector’s continued importance to Nigeria’s tax revenue base despite prevailing economic challenges.

While VAT collections from manufacturing increased, the sector’s contribution to the overall economy recorded a slight year-on-year decline.

According to the NBS, manufacturing contributed 9.57% to Nigeria’s real GDP in Q1 2026. This was marginally lower than the 9.62% recorded in Q1 2025.

However, it represented a significant improvement from the 7.4% contribution posted in the fourth quarter of 2025.

Nigeria’s overall economy expanded by by 3.89 per cent year-on-year during the review period.

The increase in VAT receipts may also reflect stronger consumer demand, improved tax compliance and the expansion of formal sector activities.