NRS Boosts VAT Collections to N1.08 Trillion In January As New Formula Takes Off

Nigeria’s Value Added Tax collections climbed to a record N1.08 trillion in January 2026, reflecting a sharp 18.5 per cent month-on-month increase driven by intensified collection efforts by the Nigeria Revenue Service (NRS).
Documents presented at the February meeting of the Federation Account Allocation Committee show VAT receipts rose from N913.96 billion in December 2025 to N1.08 trillion in January, representing a N169.20 billion increase.

After deductions at source of N79.94 billion, net VAT available for distribution stood at N1.00 trillion, up from N846.51 billion in December.
The performance exceeded the benchmark of N625.13 billion by a wide margin, reinforcing confidence in ongoing tax reforms.
The January performance marks the first full month under the revised VAT sharing structure and signals improved enforcement and compliance mechanisms under the NRS-led tax reforms.

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