The Federal Inland Revenue Service (FIRS) has reported a substantial rise in Nigeria’s Value Added Tax (VAT) collections, which reached N6.72 trillion in 2024, reflecting a 84.62% year-on-year (YoY) increase compared to N3.64 trillion recorded the previous year.
This was disclosed at the 2025 FIRS Management Retreat on Thursday, where the agency reviewed its revenue performance.
According to the data presented by Amina Ado, Coordinating Director, Large Taxpayers Group, VAT collections in 2024 demonstrated remarkable growth across both import and non-import categories.
The latest figures indicate that all tax categories recorded significant growth in 2024 compared to 2023, with non-oil taxes driving the majority of the increase.
—Non-import VAT, which stood at N2.93 trillion in 2023, rose by 75.09% to N5.13 trillion in 2024.
—Similarly, import VAT more than doubled, increasing from N715 billion to N1.59 trillion, representing a 122.38% growth.
—Company Income Tax (CIT) also recorded a 102.5% rise, climbing from N3.35 trillion in 2023 to N6.78 trillion in 2024.
—Meanwhile, the Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT segment saw a 35.2% growth, increasing from N4.26 trillion to N5.76 trillion.
—Education Tax (EDT) posted the highest YoY percentage growth, surging by 127.8%, from N719 billion in 2023 to N1.64 trillion in 2024.
—The overall non-oil tax revenue increased by 97% compared to 2023, reflecting the federal government’s intensified efforts to broaden the country’s tax base and reduce reliance on oil revenues.
Oil revenue falls below target despite growth. Despite growth across all tax categories, oil-related tax revenue did not meet FIRS’ internal projections. The PPT/HT/CIT Upstream tax, which was expected to generate N7 trillion, fell short at N5.76 trillion, achieving only 82.3% of its target.
The shortfall was attributed to lower-than-expected crude oil production, which averaged 1.55 million barrels per day (mbpd) instead of the projected 1.78 mbpd.
However, improved debt collection efforts helped offset some of the revenue losses in this segment.
