KEY POINTS

• Manufacturing sector contributed N2.05 trillion in total taxes in 2025, with VAT up 45.61 percent year-on-year
• CIT contributions rose 32.83 percent to N881.29 billion, driven by consumer goods, cement and industrial materials
• Analysts say the growth signals resilience and a deeper role in Nigeria’s non-oil revenue diversification

Nigeria’s manufacturing sector contributed N2.05 trillion in total taxes in 2025, with manufacturing sector taxes rising sharply across both Value Added Tax and Company Income Tax categories, according to the National Bureau of Statistics.

VAT contributions reached N1.17 trillion, a 45.61 percent jump from N803.53 billion in 2024. CIT contributions also climbed to N881.29 billion from N663.46 billion the prior year, a 32.83 percent increase.

Manufacturing held the top position as Nigeria’s largest VAT contributor through all four quarters, with figures ranging from N286.95 billion in Q1 to N297.68 billion in Q2 and remaining relatively stable in the second half.

Consumer goods and cement led the surge

Meanwhile, the NBS report identified consumer goods, cement and industrial materials as the primary growth drivers. CIT showed sharper quarterly swings, surging from N107.90 billion in Q1 to N360.20 billion in Q2 before easing to N141.84 billion by Q4.

Furthermore, total CIT collections across all sectors reached N9.218 trillion in 2025, even as economy-wide Q4 figures declined 49.81 percent from Q3. Still, manufacturing sector taxes in Q4 held 13.38 percent above the same quarter in 2024, signaling year-on-year resilience.

Resilience despite forex and cost pressures

However, the sector continues to grapple with high production costs, foreign exchange volatility and weak infrastructure. Analysts say these headwinds continue to pressure margins and limit capital investment across manufacturing operations.

Additionally, the NBS data shows the sector’s tax performance signals a deepening role in Nigeria’s non-oil revenue diversification strategy and reflects its underlying industrial resilience despite macroeconomic constraints.