Nigeria recorded a significant rise in foreign currency denominated tax revenue in 2025, with total receipts climbing to N6.33 trillion, according to an analysis of data from the National Bureau of Statistics. The figure reflects a 27.3 percent increase compared to N4.97 trillion recorded in 2024.
The growth highlights increasing contributions from multinational companies, export driven firms, and sectors that operate heavily in foreign currencies, as well as the impact of ongoing exce rate adjustments in the economy.
Overall tax performance across major categories also improved. Value Added Tax collections rose from N6.72 trillion in 2024 to N8.61 trillion in 2025, while Company Income Tax increased from N7.66 trillion to N9.22 trillion. Combined, total VAT and CIT collections reached approximately N17.83 trillion in 2025.
Out of this, foreign currency related tax payments accounted for about 35.5 percent of total collections, underscoring the growing role of dollar linked transactions in government revenue.
VAT payments tied to foreign currency transactions rose from N1.83 trillion to N2.10 trillion, driven largely by sectors such as oil and gas, telecommunications, financial services, and digital platforms operating across borders. Similarly, foreign currency denominated company income tax increased from N3.14 trillion to N4.23 trillion.
The data also revealed fluctuations in quarterly inflows, with strong performance in the first and third quarters of 2025, followed by declines in the second and fourth quarters. Analysts attribute this volatility to global market shifts and exce rate movements.
Local tax components also showed steady growth. Domestic VAT collections increased from N3.30 trillion to N4.48 trillion, while import VAT rose to N2.03 trillion. Company income tax from local firms also climbed from N3.40 trillion to N4.99 trillion, reflecting improved compliance and corporate performance.
Economic observers note that Nigeria’s transition toward a more market driven exce rate system has significantly increased the naira value of foreign denominated transactions, boosting overall tax inflows.
The trend suggests a gradual shift in Nigeria’s tax base toward sectors with stronger foreign exce exposure and international operations.
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