In the first half of 2024, Nigeria’s financial and insurance, and manufacturing sectors recorded the highest contributions to the country’s company income tax (CIT) revenue.
According to recent data from the National Bureau of Statistics (NBS), the financial and insurance sector recorded about N455.98 billion — the highest in CIT payment within the period — while the manufacturing sector followed closely with N265.14 billion.
The CIT, also known as corporate tax, is levied on the profits made by companies operating in Nigeria. It is regulated by the Companies Income Tax Act (CITA) and enforced by the Federal Inland Revenue Service (FIRS).
Currently, the tax is charged at 30 percent for companies with more than N100 million in turnover, and 20 percent for companies with a turnover ranging between N25 million and N100 million.
Advertisement
According to the NBS, the mining and quarrying sector also made a significant contribution of N251.65 billion, while N242.2 billion was received from the information and communication sector.
The bureau also said public administration and defence contributed N94.68 billion to Nigeria’s CIT revenue in the first six months of the year.
Further analysis showed that the CIT collected from local companies amounted to N1.73 trillion in H1 2024. The figure included N386.49 billion in Q1 and a substantial increase of N1.35 trillion in Q2.
Advertisement
For foreign payments, according to the report, stood at N1.72 trillion, propelled by N598.13 billion recorded in Q1 and N1.12 trillion in Q2.
Combined, the foreign and local CIT payments reached N3.45 trillion in H1 2024, with a contribution of N984.61 billion in Q1 and N2.45 trillion in Q2.
Here is a list of contributions from various sectors in H1 2024:
| S/N | Sectors | CIT in Q1 2024 | CIT in Q2 2024 | Total H1 2024 |
| 1 | Financial and insurance activities | N72.41bn | N383.57bn | N455.98bn |
| 2 | Manufacturing | N43.17bn | N221.97bn | N265.14bn |
| 3 | Mining and quarrying | N80.92bn | N170.73bn | N251.65bn |
| 4 | Information and communication | N48.54bn | N193.65bn | N242.20bn |
| 5 | Public administration and defence | N42.69bn | N51.99bn | N94.68bn |
| 6 | Wholesale and retail trade, repair of motor vehicles and motorcycles | N16.16bn | N74.28bn | N90.43bn |
| 7 | Transportation and storage | N12.92bn | N52.48bn | N65.40bn |
| 8 | Other service activities | N11.43bn | N40.21bn | N51.64bn |
| 9 | Construction | N10.63bn | N32.79bn | N43.42bn |
| 10 | Professional, scientific and technical activities | N11.29bn | N30.12bn | N41.42bn |
| 11 | Agriculture, forestry and fishing | N4.49bn | N25.78bn | N30.26bn |
| 12 | Electricity, gas, steam and air conditioning supply | N5.19bn | N22.44bn | N27.64bn |
| 13 | Administrative and support service activities | N6.79bn | N10.93bn | N17.72bn |
| 14 | Accommodation and food service activities | N2.53bn | N12.10bn | N14.62bn |
| 15 | Education | N6.40bn | N6.84bn | N13.24bn |
| 16 | Arts, entertainment and recreation | N3.69bn | N8.45bn | N12.14bn |
| 17 | Human health and social work activities | N3.95bn | N4.46bn | N8.41bn |
| 18 | Real estate activities | N2.04bn | N5.60bn | N7.64bn |
| 19 | Activities of extraterritorial organizations and bodies | N920.30m | N776.09m | N1.70bn |
| 20 | Water supply, sewerage, waste management and remediation activities | N260.92m | N561.93m | N822.86m |
| 21 | Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use | N70.57m | N49.24m | N119.81m |
| Local payment | N386.49bn | N1.35trn | N1.74trn | |
| Foreign payment | N598.13bn | N1.12trn | N1.72trn | |
| Total CIT | N984,61bn | N2.47trn | N3.45trn |
Advertisement
Add a comment
