CIT Revenue Hits N2.78trn in Q2, 2025

The government generated N2.78 trillion from company income tax (CIT) in the second quarter of 2025, driven by the financial services sector.

The figure is a 40.27 per cent rise over N1.98 trillion generated in Q1 and 12.66 per cent higher than the figure for Q2 2024.

The National Bureau of Statistics (NBS) in its Q2 2025 company income tax report noted that domestic CIT receipts were N2.31 trillion, while foreign CIT payments were N469.36 billion in Q2.

The report said that, on a quarter-on-quarter basis, financial and insurance activities recorded the highest growth at 772.29 per cent, followed by wholesale and retail trade, repair of motor vehicles and motorcycles, and activities of households.

These went up by 538.38 per cent and 526.79 per cent, respectively.

On the other hand, activities of extraterritorial organisations and bodies recorded the least growth at –45.01 per cent, followed by education and public administration and defence, compulsory social security at –26.61 per cent and –18.17 per cent respectively.

In terms of sectoral contributions, the top three activities with the highest contributions were financial and insurance activities with 44.13 per cent, a 26.03 per cent rise over its Q1 performance, manufacturing with 15.57 per cent, a 1.12 per cent drop from 16.69 per cent it recorded in Q1.

Mining and quarrying, though still ranked among the top three performers, declined heavily from 22.1 per cent in Q1 to 9.18 per cent in the second quarter.

Contrarily, activities of households (as employers, undifferentiated goods and services-producing activities of households for own use) recorded the least share at 0.01 per cent, followed by activities of extraterritorial organisations and bodies as well as water supply, sewerage, waste management and remediation activities with 0.04 per cent each.

This low contribution of the real sector to company income tax underscores the heightened challenges facing the sector.

The Manufacturers Association of Nigeria (MAN) recently reported that the gross value of inventory in the manufacturing sector rose to N1.04 trillion in the first half of 2025, representing a 16.05 per cent increase from N896.2 billion recorded at the end of last year.