Nigeria’s tax receipts from foreign currency-denominated payments rose to N6.33 trillion in 2025, highlighting the growing role of dollar-linked transactions in the country’s revenue profile, according to data from the National Bureau of Statistics (NBS) analysed by Nairametrics.
The figure represents a 27.3% increase from N4.97 trillion recorded in 2024, driven largely by higher corporate income tax (CIT) payments in foreign currency and increased value-added tax (VAT) collections tied to offshore and import-related activities.
An analysis of the data shows that foreign currency tax receipts accounted for a significant share of total tax collections in the period under review.
Total VAT and CIT collections combined stood at N17.83 trillion in 2025, comprising N8.61 trillion from VAT and N9.22 trillion from CIT.
This indicates that foreign currency tax inflows rose by roughly $1.19 billion year-on-year, reflecting stronger dollar-linked tax payments alongside exchange rate effects.
A breakdown shows that foreign currency CIT alone contributed N4.23 trillion in 2025, representing roughly 66.8% of total foreign currency tax receipts. VAT linked to foreign payments and imports accounted for the balance.
On a quarterly basis, foreign currency tax inflows were volatile but showed strong peaks in Q1 and Q3 2025. Collections stood at N1.79 trillion in Q1, dipped to N929.3 billion in Q2, surged to N2.43 trillion in Q3, before moderating to N1.17 trillion in Q4.
Corporate income tax remains the largest driver of foreign currency tax receipts, reflecting the dominance of multinational and export-oriented firms in Nigeria’s tax structure.
Foreign currency CIT rose to N4.23 trillion in 2025 from N3.14 trillion in 2024, marking a 34.8% year-on-year increase. This growth significantly outpaced local CIT collections, which rose from N3.40 trillion to N4.99 trillion.
Companies that typically remit taxes in foreign currencies include international oil companies, upstream and downstream petroleum firms, major telecom operators with foreign ownership structures, shipping and aviation firms, and large multinational corporations in sectors such as fast-moving consumer goods and manufacturing.
On the VAT side, collections tied to foreign currency transactions also showed steady growth, albeit at a slower pace compared to CIT.
Combined, these two components underline the increasing contribution of cross-border trade and foreign-linked consumption to VAT revenue.
However, local non-import VAT still accounted for the largest share at N4.48 trillion in 2025, indicating that domestic consumption remains the backbone of VAT collections despite the rising influence of foreign transactions.
Nairametrics earlier reported that Nigeria’s Company Income Tax (CIT) collections fell sharply in the fourth quarter of 2025, dropping to N1.49 trillion from N2.96 trillion in the preceding quarter.
This trend also reinforces the importance of exchange rate policy in shaping fiscal outcomes. A weaker naira, while raising inflationary pressures, tends to boost naira-denominated tax revenues from foreign sources.
