Record-breaking Tax Payments by Companies in Q3 2023 – National Bureau of Statistics Report
The most recent report released by the National Bureau of Statistics (NBS) reveals that companies in Nigeria paid a staggering N1.75 trillion in taxes in the third quarter of 2023. This figure represents a remarkable increase of 115.9% compared to the same period in 2022.
Furthermore, the report highlights a growth rate of 14.27% in third quarter tax payments compared to the N1.53 trillion paid in the second quarter of 2023. Of the total tax payments, local companies contributed N651.63 billion, while foreign companies accounted for a larger share with N1.10 trillion in the third quarter of 2023.
In terms of industry breakdown, the Education sector experienced the highest growth rate at 59.6%, followed by public administration and defence, compulsory social security at 57.04%. Conversely, activities of households as employers and undifferentiated goods-and-services-producing activities of households for own use showed the lowest growth rate at minus 74.34%. Water supply, sewerage, waste management, and remediation activities also exhibited a decline at minus 73.25%.
The report also reveals the sectorial contributions to the tax payments, with the ICT sector leading at 26.18%, followed by manufacturing at 23.9%, and mining and quarrying at 11.86%. On the other hand, activities of households as employers and undifferentiated goods-and services-producing activities of households for own use were at the bottom with 0.0% contribution. Water supply, sewerage, waste management, and remediation activities, as well as activities of extraterritorial organisations and bodies, were also among the lowest contributors at 0.04% and 0.10% respectively.
The significant increase in tax payments observed in the report is indicative of the growing economic activities in the country. As companies continue to thrive and expand their operations, it is anticipated that tax collections will continue to rise. This serves as a positive indicator of Nigeria’s overall economic growth and prosperity.
The NBS report underscores the responsible corporate citizenship exhibited by companies in fulfilling their tax responsibilities. These contributions play a critical role in supporting government initiatives and public services that benefit the entire nation.
In conclusion, the remarkable surge in tax payments by companies in the third quarter of 2023 emphasizes their active participation in the nation’s economic development. The NBS report provides valuable insights into the dynamics of tax contributions across various sectors, shedding light on the significant role played by companies in driving the country’s fiscal stability and growth.
Source: NBS – National Bureau of Statistics, NAN
