Nigeria’s foreign currency-denominated tax revenues rose significantly in 2025, reaching N6.33 trillion, driven by increased contributions from multinational companies and the impact of exchange rate adjustments.
According to an analysis of data from the National Bureau of Statistics (NBS), the figure represents a 27.3 percent increase compared to the N4.97 trillion recorded in 2024, reflecting growing foreign exchange-linked economic activity and stronger participation of export-oriented firms.
Combined data from Value Added Tax (VAT) and Company Income Tax (CIT) reports show that total tax collections from these two major sources rose to about N17.83 trillion in 2025, with foreign currency payments accounting for roughly 35.5 percent of the total.
VAT collections increased from N6.72 trillion in 2024 to N8.61 trillion in 2025, while CIT rose from N7.66 trillion to N9.22 trillion over the same period.
A significant portion of VAT linked to foreign currency transactions, particularly from sectors such as oil and gas, telecommunications, financial services, and digital platforms, rose from N1.83 trillion in 2024 to N2.10 trillion in 2025.
Similarly, company income tax paid in foreign currency climbed from N3.14 trillion in 2024 to N4.23 trillion in 2025, driven largely by multinational corporations, exporters, and firms earning in dollars.
The data also revealed quarterly fluctuations in foreign currency tax inflows, with strong peaks in the first and third quarters of 2025, followed by declines in the second and fourth quarters.
Overall, the increase in foreign currency tax earnings reflects Nigeria’s ongoing exchange rate reforms and a shift toward a more market-driven currency system, which has boosted the naira value of dollar-denominated transactions.
Domestic tax performance also improved, with local VAT rising from N3.30 trillion to N4.48 trillion and import VAT increasing to N2.03 trillion within the same period.
Experts note that the trend indicates a gradual structural shift in Nigeria’s tax base, with greater reliance on sectors exposed to foreign exchange earnings.
