Nigerian govt earns N1.53trn from foreign, local companies’ CIT in Q2 2023

Nigeria’s Company Income Tax (CIT) recorded 226.4 per cent quarter-on-quarter growth in the second quarter (Q2) of 2023, the National Bureau of Statistics (NBS) has revealed.

In a Q2 Company Income Tax 2023 report obtained on Monday, the NBS reported the CIT grossed by the Federal Government for the period was N1.53 trillion, surpassing the N469.01 billion posted in Q1 this year.

According to the NBS, in the report provided by the Federal Inland Revenue Service (FIRS), the CIT collections increased by 114.28 per cent year-on-year compared to Q2 2022.

A breakdown of the CIT showed that foreign company income tax payments contributed N505.91 billion in the review period and local CIT accounted for N1.02 trillion.

Water supply, sewerage, waste management, and remediation activities recorded the highest growth rate of 626.52 per cent quarter-on-quarter, followed by accommodation and food service activities with 585.11 per cent.

However, education had the lowest growth rate of – 15.48 per cent, followed by public administration and defence, compulsory social security with 25.46 per cent.

Commenting further on the CIT, NBS stated: “In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing with 25.63%; financial and insurance activities with 24.47%; and information and communication with 20.30%.

“However, the activities of households as employers, undifferentiated goods-and services-producing activities of households for own use recorded the least share with 0.01%, followed by activities of extraterritorial organizations and bodies with 0.06%; and water supply, sewerage, waste management, and remediation activities with 0.09%. In addition, on a year-on-year basis, CIT collections in Q2 2023 increased by 114.28% from Q2 2022.”

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