Nigeria’s tax receipts denominated in foreign currency climbed to N6.33tn in 2025, driven by higher contributions from multinational companies and the impact of exchange rate movements, according to data released by the National Bureau of Statistics.
The figure represents a 27.3 per cent increase from N4.97tn recorded in 2024, signalling a growing dependence on foreign-currency-linked tax revenues amid persistent naira volatility and expanding activities of export-oriented and international firms.
Analysis of the NBS Value Added Tax and Company Income Tax reports shows that foreign currency payments accounted for a substantial portion of total collections under both tax categories.
VAT revenue rose from N6.72tn in 2024 to N8.61tn in 2025, while Company Income Tax collections increased from N7.66tn to N9.22tn within the same period. Combined, VAT and CIT revenues stood at about N17.83tn in 2025.
Out of this total, N6.33tn—approximately 35.5 per cent—was generated from foreign-currency transactions, indicating that more than one-third of the government’s earnings from these taxes were tied to foreign exchange.
Further breakdown shows that VAT collected through “other payment channels,” including naira equivalents of foreign-currency transactions, 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 taxes from firms earning in foreign exchange, including multinationals, exporters and oil companies.
Quarterly data revealed fluctuations in foreign-currency CIT collections. It stood at N1.34tn in the first quarter of 2025, dropped to N469.36bn in the second quarter, surged to N1.75tn in the third quarter, and eased to N668.21bn in the fourth quarter.
Overall foreign-currency tax payments rose from N1.03tn in the first quarter of 2024 to N1.79tn in the corresponding period of 2025, before declining to N929.30bn in the second quarter. Collections later peaked at N2.43tn in the third quarter and moderated to N1.17tn in the final quarter.
The increase in foreign-currency tax receipts coincides with ongoing exchange rate reforms aimed at making the naira more market-driven, which has boosted the local currency value of foreign-denominated transactions and, in turn, tax revenues.
Meanwhile, domestic VAT collections, excluding imports, grew from N3.30tn in 2024 to N4.48tn in 2025, reflecting stronger consumer activity. Import VAT collected by the Nigeria Customs Service also increased from N1.59tn to N2.03tn.
On the CIT side, local tax payments rose from N3.40tn to N4.99tn, suggesting improved compliance and profitability among indigenous firms.
However, the faster growth in foreign-currency tax components compared to local sources points to a gradual shift in Nigeria’s tax structure toward sectors with significant foreign exchange exposure.
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