Nigeria Sees Sharp Decline in Company Income Tax
Q3 2024 Revenue Falls 28.2% Despite Sectoral Variations
The National Bureau of Statistics (NBS) reports that Nigeria’s federal government collected N1.77 trillion in company income tax (CIT) during the third quarter of 2024, a significant 28.2 percent decrease from the previous quarter’s N2.47 trillion.
The breakdown reveals local payments at N920.91 billion and foreign CIT contributions at N852.29 billion. Despite the quarterly drop, the bureau noted a modest 1.37 percent year-on-year increase from N1.74 trillion in Q3 2023.
Sectoral performance showed mixed results. Electricity, gas, steam, and air conditioning supply recorded the highest growth at 47.51 percent, while accommodation and food service activities experienced the steepest decline at -73.32 percent.
Manufacturing led sectoral contributions with 25.47 percent, followed by mining and quarrying at 18.37 percent, and information and communication at 15.07 percent.
The report comes amid ongoing tax reform debates in the National Assembly, which propose reducing the corporate income tax rate and adjusting annual tax thresholds for small businesses.
