Nigeria’s foreign currency-denominated tax receipts rose sharply to N6.33tn in 2025, reflecting increased contributions from multinational firms and the effects of exchange rate movements, based on data released by the National Bureau of Statistics and analysed on April 29, 2026.
The figure marks a 27.3 per cent increase from the N4.97tn recorded in 2024, highlighting a growing dependence on foreign-currency-linked tax inflows amid continued naira volatility and the expansion of export-oriented and foreign businesses.
A breakdown of the NBS Value Added Tax and Company Income Tax reports shows that foreign currency payments accounted for a significant portion of total tax collections across the two major revenue streams. VAT collections rose from N6.72tn in 2024 to N8.61tn in 2025, while Company Income Tax increased from N7.66tn to N9.22tn. Combined, VAT and CIT collections stood at N17.83tn in 2025.
Of this total, the N6.33tn generated from foreign currency transactions represents about 35.5 per cent, indicating that more than one-third of government earnings from these taxes were tied to foreign-currency activities.
Within VAT, “other payment channels, including naira equivalents of VAT paid in foreign currency,” increased from N1.83tn in 2024 to N2.10tn in 2025. This reflects VAT linked to foreign-currency transactions in sectors such as telecommunications, oil and gas, financial services, and cross-border digital platforms.
Similarly, Company Income Tax paid in foreign currency rose from N3.14tn in 2024 to N4.23tn in 2025, driven largely by multinational corporations, oil producers, exporters, and firms earning in dollar-denominated revenues.
Quarterly figures show notable fluctuations. Foreign-currency CIT 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 moderated to N668.21bn in the fourth quarter.
Overall, total foreign-currency tax receipts increased from N1.03tn in the first quarter of 2024 to N1.79tn in the first quarter of 2025. Collections declined to N929.30bn in the second quarter, peaked at N2.43tn in the third quarter, and fell to N1.17tn in the fourth quarter.
The increase in foreign-currency tax revenue aligns with Nigeria’s exchange rate reforms aimed at establishing a more market-driven currency regime. This has raised the naira value of foreign-denominated transactions, thereby boosting tax collections when converted into local currency.
Domestic tax performance also improved. Local VAT collections, excluding imports, rose from N3.30tn in 2024 to N4.48tn in 2025, while import VAT collections increased from N1.59tn to N2.03tn.
On the corporate side, locally generated Company Income Tax grew from N3.40tn in 2024 to N4.99tn in 2025, suggesting improved corporate profitability and stronger tax compliance among domestic firms.
However, the faster growth of foreign-currency tax components compared to local sources signals a gradual structural shift in Nigeria’s tax base toward sectors with significant foreign-exchange exposure.
