NBS: FG collected N4.89trn as company income tax in 2023

The federal government collected a total of N4.89 trillion in company income tax (CIT) in 2023.

The National Bureau of Statistics (NBS) disclosed this in its recent CIT report for the fourth quarter (Q4) of 2023.

According to NBS, last year’s figure shows CIT recorded by the government rose by 73 percent year-on-year, from N2.82 trillion in 2022.

CIT, one of government’s revenue sources, is a tax on the profits of registered local and foreign companies operating in Nigeria.

The tax is currently charged at a 30 percent rate for companies generating more than N100 million in turnover and 20 percent for companies with a turnover ranging between N25 million and N100 million.

In the latest CIT report, NBS said in Q1 2023, the federal government had a total revenue of N469.01 billion; and in Q2, the figure increased to NN1.55 trillion.

In Q3 of the same year, the CIT revenue increased to N1.75 trillion but had a 35 percent decrease in Q4 to N1.13 trillion.

In 2023, local companies contributed N2.51 trillion, compared to N1.68 trillion in 2022, while foreign CIT payments amounted to N2.39 trillion in 2023, against N1.15 trillion the year before.

MANUFACTURING RECORDS HIGHEST SECTORIAL CONTRIBUTION IN 12 MONTHS

Despite foreign exchange (FX) challenges, the manufacturing sector was the leading contributor to CIT last year, recording N626.4 billion, indicating a 34 percent increase from N468.6 billion collected in 2022.

The second-highest contributor to CIT is the information & communication sector, which collected N466.6 billion in 2023 — marking a significant 29 percent growth from N362.26 billion collected the year before.

The financial services industry, comprising financial institutions and insurance companies, has witnessed a remarkable boom in CIT contribution, recording a 120 percent increase from N208.93 billion in 2022 to N458.8 billion in 2023.