The Federal Inland Revenue Service (FIRS) has reported a sharp increase in Nigeria’s Value Added Tax (VAT) revenue, which surged to N6.72 trillion in 2024—a significant 84.62% rise from N3.64 trillion recorded in 2023. The announcement was made during the 2025 FIRS Management Retreat, where the agency reviewed its revenue performance.
The growth was driven by higher collections across both import and non-import VAT categories. Non-import VAT rose by 75.09%, from N2.93 trillion to N5.13 trillion, while import VAT more than doubled, increasing from N715 billion to N1.59 trillion, marking a 122.38% growth. Corporate Income Tax (CIT) collections also surged by 102.5%, reaching N6.78 trillion from N3.35 trillion in 2023.
The Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT segment, however, fell short of expectations, growing by 35.2% to N5.76 trillion, missing its N7 trillion target. The shortfall was attributed to lower crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.
Despite this, VAT and CIT exceeded projections, with import VAT surpassing its target by 44.3%, and CIT outperforming expectations by 18.9%. The strong performance reflects the government’s efforts to broaden the tax base and reduce reliance on oil revenue.
Looking ahead, the FIRS has set an ambitious N25.2 trillion revenue target for 2025, following a N21.6 trillion collection in 2024—significantly exceeding its N19.4 trillion goal for the year. However, ongoing debates over the proposed VAT-sharing formula in the new tax reform bills could reshape revenue allocation between the federal and state governments.
