Nigeria’s mining sector tells a new story of steady fiscal improvement in 2025.
Data from the National Bureau of Statistics (NBS) shows the sector remitted ₦686.96 billion in VAT.
Nigeria’s Mining VAT Revenue Growth
This figure rose from ₦556.19 billion recorded in 2024.
The increase reflects stronger tax compliance and improved revenue mobilisation across the industry.
Mining remains underdeveloped despite Nigeria’s vast mineral resources.
It contributes less than 5% to Gross Domestic Product (GDP).
Structural weaknesses continue to limit its economic impact nationwide.
VAT inflows stayed relatively stable throughout 2025.
The sector recorded ₦187.59 billion in Q1, the highest quarterly figure.
Collections dropped to ₦164.70 Billion In Q2.
They rose slightly to ₦166.77 billion in Q3.
Q4 closed at ₦167.90 billion, showing steady performance.
This pattern shows consistent revenue flow across the year.
Sector Challenges Persist
However, challenges still weigh heavily on the sector.
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Illegal mining reduces government revenue significantly.
Poor infrastructure discourages large-scale mining investments nationwide.
Weak incentives and policy gaps also limit sector growth.
Tax Reforms And Policy Shift
In June 2025, President Bola Ahmed Tinubu signed four tax reform laws.
These laws aim to modernise Nigeria’s national tax system.
The reforms include key changes that improve transparency and efficiency.
The government moved mineral royalty collection to the Nigeria Revenue Service (NRS).
This shift aims to reduce leakages and improve accountability.
The Federal Government collected ₦6.96 billion in mining fees in Q1 2025.
Mining companies also increased their Company Income Tax payments in 2025.
CIT rose to ₦723.33 billion from ₦520.34 billion in 2024.
This rise shows improved compliance within the sector.
Across the economy, VAT reached ₦2.28 trillion in Q3 2025.
It later fell to ₦2.19 trillion in Q4.
Despite the dip, annual growth remained positive overall.
Manufacturing still leads Nigeria’s VAT contributions.
Mining gradually improves its fiscal performance nationwide.
