The manufacturing sector's contribution to tax revenue collections in Nigeria maintained an upward trend in 2025, contributing a total of N1.17 trillion in Value Added Tax (VAT), an increase of 45.61 per cent over the N803.53 billion in 2024.
The sector's Company Income Tax (CIT) contribution rose to N881.29 billion, marking a 32.83 per cent increase from N663.46 billion recorded in 2024. This strong year-on-year growth reinforces the sector's expanding role in generating government revenue and in Nigeria's industrial development.
This was stated at the second quarterly press conference on the state of the economy by the president of the Lagos Chamber of Commerce and Industry (LCCI), Engr. Leye Kupoluyi.
He said that "following these results, we call on the government to invest more in productive infrastructure and economic policies that drive growth through job creation, lower production costs, and fiscal interventions."
Follow us on WhatsApp | LinkedIn for the latest headlines
He noted that the successful conclusion of the banking sector recapitalisation program marks a major structural milestone for Nigeria's financial system, saying that the Central Bank of Nigeria confirmed that 33 banks have met the revised minimum capital requirements, collectively raising N4.65 trillion in new capital within the implementation period.
"This outcome reflects strong investor confidence, with 72.55 per cent of the capital sourced domestically and 27.45 per cent from international investors. The new capital thresholds, N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks, have significantly strengthened the capital base of the banking sector, improved capital adequacy ratios, and enhanced overall financial system resilience," Kupoluyi said.
LCCI commended the CBN for the effective execution of this programme without disruption to banking services, as well as for strengthening prudential oversight, improving asset quality, and reinforcing governance and risk management frameworks across the sector.
Kupoluyi added that "the recapitalisation exercise presents both short-term challenges and long-term opportunities for the business community.
In the immediate term, banks are likely to adopt a cautious approach to lending as they consolidate their capital positions and align with enhanced regulatory requirements. This may result in tighter credit conditions, continued preference for low-risk assets, and limited access to affordable financing for MSMEs.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"Over the medium to long term, however, the strengthened capital base is expected to significantly expand banks' capacity to finance large-scale projects, support industrial growth, and provide long-term credit to the real sector."
LCCI president emphasised that the ultimate success of recapitalisation will depend on its ability to translate into increased and more accessible lending to businesses, particularly in high-impact sectors of the economy.
He added that "the Chamber commends the strong performance of the external sector, particularly the significant increase in foreign reserves and the sustained stability of the exchange rate. These developments have enhanced investor confidence, reduced business uncertainty, and helped moderate inflationary pressures.
"The Chamber encourages the continuation of policies that promote foreign exchange market stability, improve liquidity, and support export diversification, as these are critical for sustaining macroeconomic stability and supporting business operations."
