Nigeria’s VAT and CIT revenue fell to N3.79 trillion in the first quarter of 2026, reflecting a year-on-year decline of 6.2 percent despite a significant rise in Value Added Tax collections during the period.
The figures were disclosed by the National Bureau of Statistics in its latest report on Value Added Tax (VAT) and Company Income Tax (CIT) performance for the first quarter of 2026. According to the report, total VAT and CIT revenue declined from N4.04 trillion recorded in the corresponding period of 2025 to N3.79 trillion in Q1 2026. The agency attributed the overall decline largely to weaker Company Income Tax collections during the quarter.
Data from the report showed that Company Income Tax receipts dropped by 3.08 percent year-on-year, falling to N1.37 trillion in Q1 2026 from N1.98 trillion recorded in the same period last year. Of the total CIT collected, domestic companies contributed N538.91 billion, while foreign firms accounted for N828.82 billion.
The report identified the financial and insurance sector as the largest contributor to CIT collections, accounting for 24.73 percent of total receipts. Mining and quarrying followed with 16.06 percent, while manufacturing contributed 13.82 percent.
In contrast, VAT performance remained positive during the quarter. VAT collections rose by 19.8 percent year-on-year to N2.42 trillion from N2.02 trillion recorded in Q1 2025. The report also showed that VAT increased by 9.98 percent compared to the N2.20 trillion generated in the fourth quarter of 2025.
Breaking down the figures, local VAT payments contributed N1.11 trillion, foreign VAT payments accounted for N830.47 billion, while import VAT generated N477.55 billion. The strong VAT growth helped cushion the impact of weaker company tax collections on overall VAT and CIT revenue.
Sectoral analysis revealed that manufacturing emerged as the largest contributor to VAT collections, accounting for 29.75 percent of total VAT generated during the quarter. Information and communication activities contributed 20.61 percent, while mining and quarrying accounted for 12.32 percent.
On the lower end of the scale, household activities as employers and producers for own use contributed the least share to CIT collections at 0.01 percent. Activities of extraterritorial organisations and bodies followed with 0.13 percent, while water supply, sewerage, waste management and remediation activities accounted for 0.38 percent.
While VAT collections posted strong gains in the first quarter of 2026, a significant decline in company income tax receipts dragged overall VAT and CIT revenue lower. The latest figures highlight the growing importance of VAT as a major source of government revenue amid fluctuating corporate tax performance across key sectors of the economy.
