KEY POINTS

• Combined VAT and CIT revenue fell 6.2 percent to N3.79trn in Q1 2026.
• A decline in company income tax to N1.37trn drove the overall drop.
• VAT grew 19.8 percent year-on-year to N2.42trn, led by manufacturing.

Nigeria’s combined revenue from Value Added Tax and Company Income Tax fell 6.2 percent year-on-year to N3.79 trillion in the first quarter of 2026, down from N4.04 trillion a year earlier. The National Bureau of Statistics disclosed the figures in its VAT and CIT report for the quarter, attributing the overall decline mainly to weaker company income tax.

Company tax drags the total down

According to the NBS, CIT fell to N1.37 trillion in the quarter, which pulled the combined total lower despite stronger VAT receipts. Moreover, the bureau said domestic CIT contributed N538.91 billion, while foreign CIT payments accounted for N828.82 billion.

On sectoral shares, financial and insurance activities led CIT with 24.73 percent, followed by mining and quarrying at 16.06 percent and manufacturing at 13.82 percent. Conversely, household employers recorded the smallest share at 0.01 percent, while extraterritorial organizations contributed 0.13 percent and water supply and waste management added 0.38 percent.

VAT bucks the trend

In contrast, VAT climbed strongly. The NBS said VAT grew 19.8 percent year-on-year to N2.42 trillion, up from N2.02 trillion, and it rose 9.98 percent quarter-on-quarter from N2.20 trillion in the previous quarter.

Furthermore, the bureau broke down the VAT haul by source. Local payments stood at N1.11 trillion, foreign VAT payments reached N830.47 billion, and import VAT contributed N477.55 billion during the quarter. In terms of sectors, manufacturing took the largest share at 29.75 percent, followed by information and communication at 20.61 percent and mining and quarrying at 12.32 percent.

Ultimately, the report paints a mixed revenue picture, because consumption-based VAT surged even as company income tax weakened. Therefore, the headline decline reflects pressure on corporate earnings rather than softer spending, since VAT, which tracks transactions across the economy, kept rising. The data also signals where the tax base sits today, as manufacturing, telecoms and financial services continue to anchor both streams. By separating the two trends, the figures show policymakers that the quarter’s shortfall stemmed largely from the corporate side of the ledger.