Nigeria’s foreign currency–denominated tax receipts rose significantly to N6.33 trillion in 2025, driven by increased payments from multinational companies and the impact of exchange rate fluctuations, according to data from the National Bureau of Statistics.
The figure represents a 27.3% increase from N4.97 trillion recorded in 2024, reflecting the growing weight of foreign-exchange-linked transactions in the country’s tax system amid continued naira volatility and expanding operations of export-oriented and multinational firms.
Analysis of Value Added Tax (VAT) and Company Income Tax (CIT) data shows that foreign currency payments now account for a substantial share of total government revenue from these two major tax categories. Combined VAT and CIT collections rose from about N14.38 trillion in 2024 to N17.83 trillion in 2025.
Out of the 2025 total, N6.33 trillion—about 35.5%—came from foreign-currency-linked sources, underscoring Nigeria’s increasing dependence on dollar-denominated earnings for tax revenue.
VAT collections increased from N6.72 trillion in 2024 to N8.61 trillion in 2025. Within this, foreign-currency-related VAT payments rose from N1.83 trillion to N2.10 trillion, largely driven by sectors such as oil and gas, telecommunications, financial services, and digital platforms operating across borders.
Company Income Tax also recorded strong growth, rising from N7.66 trillion in 2024 to N9.22 trillion in 2025. Foreign-currency CIT payments increased from N3.14 trillion to N4.23 trillion, reflecting higher contributions from multinational corporations, exporters, and oil-producing firms.
Quarterly data showed fluctuations in CIT foreign-currency inflows, peaking in the third quarter of 2025 before declining toward the end of the year. Overall foreign-currency tax inflows also followed a volatile pattern, with strong growth in Q1 and Q3 but softer performance in Q2 and Q4.
The rise in foreign-currency tax collections coincides with Nigeria’s ongoing exchange rate reforms, which have made the naira value of dollar transactions significantly higher when converted for tax purposes. This has boosted overall revenue figures even without proportional increases in real economic activity.
Domestic tax components also grew during the period. Local VAT collections rose from N3.30 trillion in 2024 to N4.48 trillion in 2025, while import VAT increased to N2.03 trillion. Similarly, local CIT payments rose from N3.40 trillion to N4.99 trillion, indicating improved corporate earnings and compliance.
Despite these gains, the faster expansion of foreign-currency-linked taxes highlights a structural shift in Nigeria’s revenue base toward sectors exposed to foreign exchange earnings and global market activity.
