The National Bureau of Statistics (NBS) has revealed that the federal government of Nigeria generated a total of N2.47 trillion from Company Income Tax (CIT) in the second quarter of 2024, marking a significant increase of 150.83 percent compared to the first quarter’s N984.61 billion.
In its latest report released on Monday, the NBS attributed the substantial growth to both local and foreign CIT payments, with local contributions amounting to N1.35 trillion, while foreign CIT payments added N1.12 trillion.
CIT, which is levied on the profits of both domestic and non-resident companies operating in Nigeria, stands at 30 percent for companies with turnovers exceeding N100 million, and 20 percent for businesses with turnovers between N25 million and N100 million.
The report highlighted notable growth across several sectors. The agriculture, forestry, and fishing sector led with an impressive growth rate of 474.5 percent, followed by financial and insurance activities at 429.76 percent, and manufacturing at 414.15 percent.
In contrast, the report noted a decline in certain areas.
“Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with -30.22%, followed by activities of extraterritorial organizations and bodies with -15.67%,” the NBS reported.
In terms of contributions to overall CIT revenue, the financial and insurance activities sector led with 15.53 percent, followed by manufacturing at 8.99 percent, and information and communication at 7.84 percent.
Sectors with the least contributions included activities of households as employers (0.00%), water supply and waste management (0.02%), and extraterritorial organizations (0.03%).
The report also showed that on a year-on-year basis, CIT revenue grew by 59.52 percent from N1.55 trillion in Q2 2023 to N2.47 trillion in Q2 2024.