Ten Banks Contribute N987bn in Taxes to FG

Ten business banks in Nigeria paid a mixed N987.40bn in company earnings tax to the Federal Authorities within the 2024 monetary yr.

This sum was disclosed within the banks’ consolidated and separate monetary statements for the yr ended December 31, 2024, on the Nigeria Trade Restricted.

An evaluation of the monetary statements of Entry Holdings, United Financial institution for Africa, First HoldCo Plc, Sterling Monetary Holdings, Wema Financial institution, Zenith Financial institution, Warranty Belief Holding Firm, Stanbic IBTC, Constancy Financial institution, and FCMB revealed this collective tax remittance.

In line with The Federal Inland Income Service Firm Revenue Tax, also called Company Tax, is a tax levied on the earnings made by firms working in Nigeria.

UBA paid N241.12bn in company earnings tax for the yr, which is a 6.07 per cent improve from N227.30bn in 2023.

Zenith Financial institution remitted N201.62bn in taxes for the yr, reflecting a pointy 468.16 per cent improve from N35.47bn in 2023.

Entry Holdings made a tax cost of N159.26bn in 2024, a big 109.51 per cent improve from the N76.01bn paid in 2023.

First HoldCo paid N58.66bn in taxes, marking a 108.89 per cent improve from N28.17bn in 2023.

Sterling Monetary Holdings contributed N2.48bn in earnings taxes in 2024, up 118.45 per cent from N1.13bn in 2023

Wema Financial institution paid N13.27bn in company taxes, reflecting a considerable 638.73 per cent improve from N1.80bn in 2023.

GTCO paid N175.03bn in company tax, a 205.48 per cent improve from N57.29bn in 2023.

Stanbic IBTC paid N35.19bn in taxes in 2024, up 106.56 per cent from N17.03bn in 2023.

Constancy Financial institution contributed N82.42bn in taxes, a exceptional 306.99 per cent improve from N20.30bn in 2023.

FCMB paid N18.36bn in company taxes, reflecting a 101.92 per cent improve from N9.12bn in 2023.

When contacted the Chief Economist and Managing Editor of Proshare, Teslim Shitta-Bey, defined the underlying dynamics shaping the monetary efficiency of banks.

“The rise in revenue is a direct results of the excessive rate of interest surroundings,” he mentioned. “Banks are incomes extra from treasury devices and retail lending. The Federal Authorities’s aggressive borrowing by way of the treasury payments market has pushed up yields, permitting banks to profit from greater returns on funding.”

Shitta-Bey famous that whereas these good points have strengthened financial institution stability sheets, they’ve additionally resulted in a redirection of funds.

“The cash that might have been channelled in direction of dividend payouts or threat property is now largely tied up in authorities securities. It displays a more durable enterprise surroundings the place credit score to the personal sector is being deprioritised in favour of safer, higher-yielding authorities debt.”

He added that whereas banks are thriving, the broader financial system faces a combined outlook as authorities borrowing crowds out personal funding.

Financial Confidential reported that receipts into the federation account grew by 7.48 per cent to N6.86 trillion within the third quarter of 2024. Final yr, it was reported that Seven banks paid N392.53bn as tax within the first half of 2024, in keeping with an evaluation of their second-quarter monetary stories for the interval ended June 30 filed with the Nigeria Trade.