Nigeria: Nigeria Gets N714bn from Company Income Tax

Nigerian government gets more than N714 billion from company income tax, according to the National Bureau of Statistics (NBS). In Nigeria, corporate tax collection is the responsibility of the Federal Inland Revenue Services.

In the second quarter report for the fiscal year 2022, the Bureau said an aggregate Company Income Tax (CIT) printed at N714.40 billion, translating to a significant improvement when compared with the first quarter of the same year.

The Bureau said the value recorded for Q2 2022 indicated a growth rate of 29.53 per cent on a quarter-on-quarter basis from N551.53 billion in Q1 2022. On a year-on-year basis, CIT collections in the second quarter of 2022 increased by 51.34 per cent from Q2 2021.

The report showed that local payments received were N634.01 billion, while Foreign CIT payments contributed N80.39 billion in Q2 2022. The report said on a quarter-on-quarter basis, the activities of accommodation and food services recorded the highest growth rate with 481.93 per cent.

“This was followed by information and communication with 430.67 per cent, and transportation and storage with 339.08 per cent,” the report said. On the other hand, activities of extraterritorial organisations and bodies had the lowest growth rate with -42.59 per cent.

This was followed by activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80 per cent.

In terms of sectoral contributions, the report said the top three largest shares in Q2 2022 were manufacturing with 27.55 per cent; information and communication with 24.56 per cent and financial and insurance with 14.98 per cent.

On the other hand, the activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.004 per cent

“This was followed by activities of extraterritorial organisations and bodies with 0.07 per cent; and water supply, sewerage, waste management and remediation activities with 0.12 per cent,” it added.

CIT is a tax on the profits of incorporated entities in Nigeria, including taxes on the profits of non-resident companies carrying on business in Nigeria.