LAGOS, April 13 – Nigeria’s mining and quarrying sector generated ₦686.96 billion ($504 Million) in Value Added Tax (VAT) in 2025, according to data released by the National Bureau of Statistics (NBS).
The figure marks an increase from N556.19 billion recorded in 2024, pointing to stronger tax collection within the sector with the data also highlighting a gradual improvement in fiscal contributions from an industry that has historically delivered limited revenue to the government.
A breakdown of the figures shows relatively steady performance across the year. VAT collections stood at ₦187.59 billion in the first quarter, the highest quarterly contribution. This was followed by ₦164.70 billion in the second quarter, while the third quarter recorded ₦166.77 billion. In the final quarter, collections rose slightly to ₦167.90 billion, indicating stable inflows in the second half of the year.
Despite the increase, the mining sector continues to account for less than five percent of Nigeria’s Gross Domestic Product (GDP). Long-standing challenges, including illegal mining activities, weak incentives, infrastructure gaps, and policy constraints, have continued to limit its broader economic contribution.
Recent reforms have, however, supported improved revenue collection. In June 2025, President Bola Ahmed Tinubu signed four tax reform laws aimed at strengthening the country’s tax framework. These include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill.
As part of the changes, mineral royalty collection was transferred to the Nigeria Revenue Service, while mining fees generated ₦6.96 billion in the first quarter of 2025, reflecting improved compliance.
