Nigeria has recorded a total Value Added Tax (VAT) inflow of N1.48 trillion across September and October 2025, pointing to steady consumer activity and continued improvements in tax collection despite wider economic pressures.
Figures released following the Federation Account Allocation Committee (FAAC) meetings for both months show that VAT remains a key non-oil revenue stream for the country. FAAC confirmed that N812.593 billion was generated from VAT in September. In October, VAT returns amounted to N670.30 billion, with an additional N47.87 billion collected through the Electronic Money Transfer Levy (EMTL).
The latest numbers align with ongoing efforts by the Federal Inland Revenue Service (FIRS) to expand the tax base and strengthen compliance across major industries. Analysts observing the trend suggest that the consistent VAT performance reflects active spending patterns in sectors such as telecommunications, manufacturing and financial services, even as inflation continues to weigh on households.
FAAC disbursed N2.09 trillion to federal, state and local governments for October, slightly below the N2.10 trillion shared in September. October’s figures combined statutory revenue, VAT, EMTL and gains from exchange-rate differentials, with statutory inflows showing an uptick of N36 billion.
For September, FAAC allocated N2.103 trillion to the three tiers of government. This included N812.593 billion from VAT and N51.684 billion from the EMTL. The allocations were approved during FAAC’s October 2025 meeting held in Abuja.
Fiscal commentators argue that VAT is likely to remain central to public financing as oil revenue patterns remain unpredictable. However, some experts warn that states must strengthen transparency around how allocations are used, emphasising the need to support economic growth, improve infrastructure and ease the financial strain on households.
With governments at both federal and sub-national levels relying more heavily on VAT receipts, attention is expected to remain on deepening enforcement, widening the tax net and enabling businesses to remain productive.
