Nigeria’s foreign currency-denominated tax receipts surged to N6.33tn in 2025, reflecting stronger contributions from multinational firms and the impact of exchange rate movements, according to data released by the National Bureau of Statistics.
The figure marks a 27.3 per cent increase from the N4.97tn recorded in 2024, underscoring a growing reliance on foreign-currency-linked tax inflows as currency volatility persists and export-oriented sectors expand.
Analysis of Value Added Tax and Company Income Tax reports shows that foreign currency payments formed a substantial portion of total tax collections across both revenue streams.
Total VAT collections rose from N6.72tn in 2024 to N8.61tn in 2025, while Company Income Tax increased from N7.66tn to N9.22tn within the same period. Combined, VAT and CIT collections stood at approximately N17.83tn in 2025.
Out of this total, the N6.33tn paid in foreign currency terms accounted for about 35.5 per cent, indicating that more than one-third of government earnings from these taxes were tied to foreign-denominated transactions.
Further breakdown shows that VAT collected through “other payment channels,” including the naira equivalent of foreign currency payments, rose from N1.83tn in 2024 to N2.10tn in 2025. These payments are largely linked to sectors such as telecommunications, oil and gas, financial services, and cross-border digital platforms.
Similarly, Company Income Tax paid in foreign currency increased significantly from N3.14tn in 2024 to N4.23tn in 2025, reflecting the performance of multinationals, exporters, and firms earning in dollars.
Quarterly data reveals notable fluctuations in foreign-currency CIT. It stood at N1.34tn in the first quarter of 2025, declined sharply to N469.36bn in the second quarter, surged to N1.75tn in the third quarter, and moderated to N668.21bn in the fourth quarter.
Overall foreign currency tax receipts followed a similar pattern, rising from N1.03tn in the first quarter of 2024 to N1.79tn in the first quarter of 2025. This was followed by a dip to N929.30bn in the second quarter, a peak of N2.43tn in the third quarter, and a decline to N1.17tn in the final quarter.
The increase in foreign-denominated tax contributions coincides with Nigeria’s shift toward a more market-reflective exchange rate regime. The policy has raised the naira value of foreign earnings, translating into higher tax receipts when converted.
Domestic tax performance also improved during the period. Local VAT collections, excluding imports, rose from N3.30tn in 2024 to N4.48tn in 2025, indicating sustained growth in consumer activity. Import VAT collected by the Nigeria Customs Service increased from N1.59tn to N2.03tn.
On the corporate side, local Company Income Tax payments climbed from N3.40tn in 2024 to N4.99tn in 2025, suggesting stronger profitability among Nigerian firms and improved tax compliance.
Despite this growth, the faster expansion of foreign-currency tax components compared to domestic sources highlights a structural shift in Nigeria’s tax base toward sectors with significant foreign-exchange exposure.
