Latest Data released by the National Bureau of Statistics (NBS) has shown that Nigeria’s Company Income Tax (CIT) collections witnessed a remarkable surge of 73.14%, reaching N4.9 trillion in 2023, up from N2.83 trillion recorded in the previous year.
Gatekeepers News the 2023 CIT data encompasses Local CIT payments totalling N2.51 trillion and foreign CIT contributions amounting to N2.39 trillion, indicating the broad-based growth across both domestic and international business operations.
The CIT collections highlight the Nigerian government’s efforts to enhance tax administration and expand the tax net. It also indicates a robust economic environment and improved compliance with tax obligations.
The Manufacturing sector recorded the highest CIT contribution of N626.4 billion, with a 34% increase from the N468.6 billion collected in 2022, despite facing challenges such as high-interest rates, limited credit access, and an unstable power supply.
The Information & Communication sector closely follows with a CIT contribution of N466.6 billion, with a 29% growth from N362.26 billion in 2022.
The Financial & Insurance Activities sector also witnessed a significant increase, with CIT collections surging by 120% to N458.8 billion from N208.93 billion in 2022. This sector’s unprecedented growth can be attributed to the FX revaluation gain that boosted the profit of banks in 2023.
However, the activities of households as employers and undifferentiated goods- and services-producing activities of households for own use, experienced a 23% annual growth in CIT payments.
The Water supply, sewerage, waste management, and remediation activities sector witnessed a 15% decline in its CIT contributions, while the activities of extraterritorial organizations and bodies reported a modest 9% increase in CIT payments.
