Prime Ten Banks Pay N260.3bn As Revenue Tax

Ten high business banks listed on the Nigerian Alternate Restricted have paid N260.3 billion as Firm earnings tax (CIT) in 2022, representing a 28 % enhance over the N203.06 billion they paid in 2021.

This was disclosed by the banks of their audited monetary statements for the 12 months 2022.

The banks and the CIT paid are Entry Financial institution (N14.7 billion), GTBank (N44.9 billion), UBA (N30.6 billion) and Zenith Financial institution (N60.7 billion).

Others are Ecobank (N79.88 billion), Stanbic IBTC (N19.5 billion), Union Financial institution (N1.6 billion), Constancy Financial institution (N6.9 billion), Sterling Financial institution (N1.4 billion) and Unity Financial institution (N117.2 million),

The rise in CIT adopted a 7.11 per cent year-on-year enhance within the mixed revenue after tax (PAT) of the banks, to N1.06 trillion in 2022 from N989.6 billion in 2021.

Some banks, nonetheless, recorded a Yr-on-year decline in revenue after tax, however the CIT paid by the banks represents 10.7 per cent of the overall CIT generated into the Federation Account in 2022.

In line with knowledge from the Nigeria Bureau of Statistics, whole CIT collections rose to N2.8 trillion in 2022 from N1.67 trillion in 2021, representing a 68 per cent enhance.

Regardless of the rise in CIT collections, analysts famous that the nation’s tax-to-Gross Home Product, GDP, continues to be low, particularly in view of the massive deficit spending of the Federal Authorities.

Commenting, analysts at FBNQuest Securities Restricted, mentioned: “Though the rise within the tax take is commendable, due to enhancements in tax administration and assortment effectivity, nonetheless, Nigeria’s tax revenue-to-GDP is low even in comparison with sub-Saharan African friends.

“Nigeria’s non-oil income which stands at lower than 5% of GDP compares much less favourably with comparable tax revenue-to-GDP ratios for South Africa, Kenya, and Ghana with c. 23%, 14%, and 11%, respectively

“Going ahead, we anticipate the incoming administration to develop non-oil-related taxes by additional broadening the tax base and bettering on assortment effectivity”.