NBS: Nigeria recorded N1.7trn company income tax in Q3 2024 — down by 28.2%

The National Bureau of Statistics (NBS) says the federal government collected a total of N1.77 trillion as company income tax (CIT) in the third quarter (Q3) of 2024.

NBS, in its CIT report for Q3 2024, said the figure decreased by 28.2 percent from N2.47 trillion collected in Q2 2024.

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

According to the bureau, local payments received were N920.91 billion while foreign CIT contributed N852.29 billion in Q3 2024.

In Nigeria, the CIT is charged at 30 percent for companies with more than N100 million in turnover, and 20 percent for companies earning between N25 million and N100 million.

“On a quarter-on-quarter basis, Electricity, gas, steam and air conditioning supply recorded the highest growth rate with 47.51%, followed by Public administration and defence, compulsory social security with 19.25%,” NBS said.

“On the other hand, Accommodation and food service activities had the least growth rate with –73.32%, followed by Financial and insurance activities with –70.04%.”

A sectoral contribution breakdown showed that the top three largest shares in Q3 2024 were manufacturing (25.47 percent) followed by mining and quarrying (18.37 percent), and information and communication (15.07 percent).

“Nevertheless, the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.004%, followed by Water supply, sewerage, waste management, and remediation activities with 0.03% and activities of extraterritorial organizations and bodies with 0.08%,” the bureau added.

On a year-on-year basis, the NBS said CIT collections in the period reviewed increased by 1.37 percent from N1.74 trillion recorded in Q3 2023.

The tax reform bills currently being debated at the national assembly, seek to increase the annual tax threshold for small businesses from N25 million to N50 million, proposing a reduction in the CIT to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026.