The Federal Inland Revenue Service (FIRS) has reported a remarkable surge in Nigeria’s Value Added Tax (VAT) collections, reaching N6.72 trillion in 2024—an 84.62% increase compared to N3.64 trillion in the previous year.
This significant achievement was revealed at the 2025 FIRS Management Retreat, where the agency reviewed its revenue performance for the past year. Amina Ado, Coordinating Director of the Large Taxpayers Group, presented the data, highlighting substantial growth across both import and non-import VAT categories.
VAT collections, which showed a strong upward trajectory, were fueled by impressive growth in non-oil taxes, with non-import VAT rising by 75.09%, from N2.93 trillion in 2023 to N5.13 trillion in 2024. Import VAT also saw a remarkable increase, more than doubling from N715 billion to N1.59 trillion, reflecting a growth of 122.38%.
Further supporting this positive trend, Company Income Tax (CIT) climbed by 102.5%, from N3.35 trillion in 2023 to N6.78 trillion in 2024. Meanwhile, the Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), and Upstream CIT categories posted a growth of 35.2%, from N4.26 trillion to N5.76 trillion.
Education Tax (EDT) saw the highest year-on-year percentage increase, surging by 127.8% from N719 billion in 2023 to N1.64 trillion in 2024. Overall, non-oil tax revenue increased by 97%, reflecting the federal government’s efforts to broaden the tax base and reduce reliance on oil revenue.
Despite the encouraging growth in tax collections, oil-related revenues fell short of targets. The PPT/HT/CIT Upstream segment, which had been expected to generate N7 trillion, achieved only N5.76 trillion—82.3% of its target—due to lower-than-expected crude oil production, averaging 1.55 million barrels per day instead of the anticipated 1.78 million barrels.
Nonetheless, improved debt collection strategies helped mitigate some of the shortfall, providing a buffer against the revenue gaps from oil-related taxes.
This performance underscores the government’s growing success in diversifying revenue sources and expanding the tax base, moving away from an over-reliance on oil revenue.
