For Nigeria, Company Income Tax payments for Q2 2024 increased significantly as compared to Q1 of the year. According to a National Bureau of Statistics study from Nigeria, Company Income Tax (CIT) was reported at N2.47 trillion for the second quarter of 2024, a 150.83% quarter-over-quarter increase from N984.61 billion in the first quarter of 2024. Additionally, an increase was seen when compared to the N1.53 trillion same time in the previous year.
Local payments made in Q2 2024 amounted to N1.35 trillion, of which N1.12 trillion came from foreign CIT payments. The industries with the highest quarterly growth rates were manufacturing (414.15%), the banking and insurance sectors (429.76%), and agriculture, forestry, and fisheries (474.50%).
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for personal use had the lowest growth rate of -30.22%, followed by activities of extraterritorial organizations and bodies at -15.67%.
However, the lowest growth rate was recorded by household activities as employers and undifferentiated goods- and services-producing activities for personal use (-30.22%), followed by extraterritorial organizations and bodies (-15.67%).
Higher CIT payments could potentially give the Nigerian government a much-needed buffer to fund infrastructure projects, social programs, and other critical areas without depending significantly on debt.
While the topic is subtle, given Nigeria’s present economic climate, the spike in CIT revenue may also reflect an increase in company profitability across industries.
With that said, here are the 10 sectors that contributed the most to the country’s CIT payments.
Top 10 sectors that contributed the most to Nigeria Corporate income tax
| Rank | Sector | CIT (N’million) |
|---|---|---|
|
1. |
Financial and Insurance activities |
N383,574,29 |
|
2. |
Manufacturing |
N221,970.07 |
|
3. |
Information and Communication |
N193,654.22 |
|
4. |
Mining and Quarrying |
N170,729.18 |
|
5. |
Wholesale and Retail Trade |
N74,277.93 |
|
6. |
Transportation and Storage |
N52,478.31 |
|
7. |
Public Administration and Defence, Compulsory Social Security |
N51,993.20 |
|
8. |
Other Service Activities |
N40,207,76 |
|
9. |
Construction |
N32,789.46 |
|
10. |
Professional, Scientific, and Technical Activities |
N30,122.72 |
