Nigeria posts 38% Company Income Tax growth in H1 2025 – NBS

By Progress Godfrey, Abuja

Nigeria generated N4.76 trillion in company income tax (CIT) in the first half of 2025, marking a 38 per cent rise from the N3.45 trillion recorded in the same period of 2024, according to fresh data from the National Bureau of Statistics (NBS).

The jump was driven almost entirely by domestic companies, whose tax remittances surged even as payments from foreign firms weakened.

CIT collections climbed from N1.98 trillion in Q1 to N2.78 trillion in Q2, representing a 40 per cent quarter-on-quarter increase. Year-on-year, the Q2 figure was also up 13 per cent from the N2.47 trillion posted in Q2 2024.

NBS data shows domestic firms accounted for most of the growth, with their CIT rising from N646.51 billion in Q1 to N2.31 trillion in Q2 — a quarter-on-quarter leap of more than 250 per cent. Compared with the same quarter last year, domestic payments grew 71 per cent, up from N1.34 trillion in Q2 2024.

Foreign companies moved in the opposite direction. Their tax contributions fell 64.9 per cent quarter-on-quarter, sliding from N1.34 trillion in Q1 to N469.36 billion in Q2. On a year-on-year basis, foreign payments were down 58 per cent from N1.12 trillion in Q2 2024.

The financial and insurance sector remained the biggest contributor to domestic tax revenue in Q2, remitting N1.02 trillion — about 44 per cent of all local CIT. The NBS linked the sector’s performance to banking recapitalisation, improved foreign exchange positions and higher interest income. Tax payments from the sector were up 166 per cent from N383.57 billion in Q2 2024.

Manufacturing followed with N360.20 billion, a 62 per cent rise from N221.97 billion a year earlier. Mining and quarrying came third with N212.27 billion, reflecting 24 per cent year-on-year growth.

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