Nigerian govt revenue from CIT rises by 150% to 2.47tn

The Nigerian federal government’s Company Income Tax (CIT) revenue collection in the second quarter of 2024 rose by 150.83 percent to N2.47 trillion.

The National Bureau of Statistics disclosed this in its CIT collection Data released on Monday.

The data showed that in the first three months of the year, CIT collection stood at N984.61 billion.

According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50 percent, followed by financial and insurance activities at 429.76 percent, and manufacturing at 414.15 percent.

On the other hand, the lowest growth rate was observed in household activities as employers and undifferentiated goods- and services-producing activities for own use, which recorded a decline of –30.22 percent, followed by extraterritorial organizations and bodies with a decrease of –15.67 percent.

Sectoral analysis showed that the top three sectors contributing the largest shares were financial and insurance activities at 15.53 percent, manufacturing at 8.99 percent, and information and communication at 7.84 percent.

In contrast, household activities as employers and undifferentiated goods- and services-producing activities for own use had the smallest share at 0.00 percent, followed by water supply, sewerage, waste management, and remediation activities at 0.02 percent, and extraterritorial organizations and bodies at 0.03 percent.

On a year-on-year basis, CIT collections in Q2 2024 rose by 59.52 percent compared to the N1.55 trillion recorded in Q2 2023.

However, the spike in CIT collection in Q2 was mainly propelled by a rise in foreign Company Income Tax (CIT) payments which increased by 87.24 percent to N1.11 trillion when compared to Q1, 2024 and more than doubled when compared to the corresponding period of last year.