NBS says Nigeria generated N4.76trn from company income tax in H1 2025

Nigeria generated N4.76 trillion from company income tax (CIT) in the first half (H1) of 2025, with domestic firms accounting for the bulk of the growth, according to new data from the National Bureau of Statistics (NBS).

The data also showed that the CIT recorded in the first six months of this year exceeded the N3.45 trillion generated in H1 2024, representing a 38 percent increase.

As one of the government’s revenue-generating mechanisms, the CIT is a tax on the profits of local and foreign companies operating in Nigeria.

NBS also said the CIT rose from N1.98 trillion in the first quarter (Q1) to N2.78 trillion in the second quarter (Q2).

However, compared to the N2.47 trillion reached in Q2 last year, the CIT increased by 13 percent year-on-year.

According to the bureau, local companies’ CIT rose from N646.51 billion in Q1 to N2.31 trillion in the second quarter, indicating a quarter-on-quarter increase of over 250 percent.

On a year-on-year basis, local companies’ payments rose from N1.34 trillion in the second quarter of 2024 to N2.31 trillion in Q2 2025, reflecting an increase of 71 percent.

Foreign companies’ payments moved in the opposite direction, with their CIT contribution dropping by 64.9 percent quarter-on-quarter, from N1.34 trillion to N469.36 billion.

On a year-on-year basis, CIT from foreign-based companies fell by 58 percent, from N1.12 trillion in the second quarter of 2024 to N469.36 billion in Q2 of 2025.

FINANCIAL SECTOR TOPS CONTRIBUTORS

The financial and insurance sector recorded the highest sectoral contribution in Q2, paying N1.02 trillion.

This sector alone accounted for 44 percent of all local CIT in Q2, signalling strong earnings driven by banking recapitalisation efforts, FX gains, and higher interest income.

According to NBS, the CIT from the sector represents an increase of 166 percent compared to the N383.57 billion recorded in Q2 of 2024.

Also, the manufacturing sector followed with N360.20 billion in income tax, with an increase of 62 percent when compared to N221.97 billion recorded in the second quarter of the previous year.

Mining and quarrying took the third spot with a remittance of N212.27 billion, closing the period with 24 percent year-on-year increase.