Significant Growth in Nigeria’s Company Income Tax Collection
According to the recent report released by the National Bureau of Statistics, the Company Income Tax (CIT) collection in Nigeria experienced a remarkable increase of 115.90%, reaching a total of N1.75 trillion in the third quarter of 2023. This substantial growth marks a significant improvement from the N810.19 billion recorded in the same period in 2022.
The CIT collection report for Q3 2023 from the Bureau also indicates a quarter-on-quarter increase of 14.27% from N1.53 trillion in the second quarter of 2023. These figures demonstrate the impressive growth of tax revenue from companies in Nigeria.
Furthermore, the report highlights the specific sectors that demonstrated growth in CIT collection, with the education sector leading at 59.60%, followed by public administration, defence, and compulsory social security at 57.04%. However, the activities of households, undifferentiated goods and services produced for households, sewage, waste management, and remediation activities experienced a decline.
The sectoral contribution to the CIT collection for the quarter shows that the information and communication sector contributed the most with 26.18%, followed by the manufacturing and mining and quarrying sectors at 23.90% and 11.86% respectively. These three sectors combined contributed a substantial 61.94% to the CIT collection for the quarter, amounting to approximately N1.08 trillion of the total N1.75 trillion collection.
It is noteworthy that the manufacturing and ICT sectors experienced a decrease in their CIT collection for the quarter compared to the previous quarter. The financial and insurance sector activities, as well as the transportation and storage sector’s CIT, also saw a reduction in collection for Q3.
Despite these declines, the agricultural sector’s CIT collection remained relatively stable, recording a payment of N13.31 billion in Q3 of 2023.
The insights provided by this report offer significant information on the fluctuations in CIT collection across various sectors in Nigeria. They emphasize the need for continued monitoring and analysis to comprehend the dynamics of tax revenue generation and its impact on the economy.
As Nigeria continues to enhance its fiscal policies and revenue generation, the latest CIT collection figures provide valuable insights into the country’s economic progress and areas that require attention. With the government’s ongoing efforts to improve tax compliance and enforcement, it is hoped that there will be sustained growth in corporate tax collection, further contributing to the nation’s development and prosperity.
