Nigeria’s manufacturing industry delivered a strong boost to government revenue in the first quarter of 2026, contributing N329.59 billion in Value Added Tax collections and reinforcing its position as a major pillar of the country’s non oil economy.
The News Chronicle reports that the latest figures released by the National Bureau of Statistics show that VAT revenue from manufacturing activities rose significantly from N286.95 billion recorded in the same period of 2025. The performance also exceeded every quarterly contribution posted throughout last year, highlighting the sector’s resilience despite ongoing economic pressures.
Data showed that manufacturing VAT collections climbed steadily from N297.68 billion in the second quarter of 2025 to N329.59 billion in the opening quarter of 2026. The latest figure represents a year on year increase of nearly 15 percent, reflecting sustained production levels, stronger consumer demand and improved tax compliance across the industry.
While the sector’s share of real GDP eased slightly to 9.57 percent from 9.62 percent a year earlier, it marked a notable recovery from the 7.4 percent recorded in the final quarter of 2025. This comes as Nigeria’s economy expanded by 3.89 percent during the period.
Industry stakeholders maintain that manufacturing remains critical to economic diversification, job creation and revenue generation. However, challenges such as high energy costs, foreign exchange pressures and infrastructure gaps continue to weigh on growth. Analysts say ongoing reforms aimed at improving access to finance and strengthening the business environment could further unlock the sector’s potential in the months ahead.
