Impressive Surge in Nigeria’s Company Income Tax Collection

The most recent report from the National Bureau of Statistics (NBS) has disclosed a remarkable 115.90% surge in Nigeria’s Company Income Tax (CIT) collection, skyrocketing from N810.19 billion in Q3 of 2022 to an astounding N1.75 trillion in the same period of 2023.

Upon quarterly examination, the CIT collection exhibited a substantial 14.27% increase from N1.53 trillion in Q2 of 2023 to the current figure for the third quarter.

The report also underscored the varying growth rates in CIT collection across different sectors. The education sector witnessed the highest growth with a 59.60% rise, followed by public administration and defense, compulsory social security with a 57.04% increase. On the other hand, activities related to households and undifferentiated goods and services produced for households experienced a significant decline with a growth rate of -74.34%.

Furthermore, the breakdown of CIT collection by sector identified the information and communication sector as the highest contributor at 26.18%, followed by the manufacturing sector at 23.90% and mining and quarrying at 11.86%. Collectively, these three sectors accounted for an impressive 61.94% of the total CIT collection.

Despite the overall surge in CIT collection, certain sectors observed a decrease in their contributions. The CIT collection in the manufacturing sector decreased from N262.73 billion in Q2 to N155.72 billion in Q3, while the ICT sector exhibited a decline from N208.10 billion to N170.56 billion in the same period. The financial and insurance sector activities also experienced a decline, dropping from N250.77 billion to N68.46 billion.

Additionally, the transportation and storage sector’s CIT plummeted from N45.01 billion in Q2 to N15.16 billion in Q3, while the agricultural sector maintained a relatively consistent CIT payment of N13.31 billion for the period under review.

These figures denote a substantial shift in the landscape of CIT collection, reflecting both positive and negative trends across various sectors of the Nigerian economy.

In conclusion, the significant surge in Nigeria’s CIT collection is a positive indicator for the country’s economy, signifying growth and stability. However, the contrasting trends in sectoral contributions underscore the need for targeted strategies to ensure a balanced and sustainable revenue stream from all sectors.

The NBS report furnishes valuable insights for policymakers, economists, and business leaders, providing a comprehensive overview of the evolving dynamics within Nigeria’s tax landscape. As the country continues to navigate economic challenges and opportunities, the analysis of CIT collection serves as a critical tool for informed decision-making and strategic planning.