Nigeria’s company income tax (CIT) collection for the third quarter (Q3) of 2024 increased by 1.37%.
The National Bureau of Statistics (NBS) reported that CIT collections grew from N1.74 trillion in Q3 2023 to N1.77 trillion.
This increase highlights a modest rise in corporate tax contributions compared to the same period last year.
However, the Q3 2024 collection showed a decrease of 28.2% compared to the previous quarter’s N2.47 trillion.
The NBS provided a breakdown of the CIT, showing local payments amounted to N920.91 billion in Q3 2024.
Foreign CIT contributions were recorded at N852.29 billion during the same period, reflecting the government’s broad revenue base.
The CIT is charged on the profits of companies operating in Nigeria, with rates depending on annual turnover.
For firms earning more than N100 million, the CIT rate stands at 30%, while lower earners face 20%.
Sectoral contributions to the CIT also varied in Q3 2024, with manufacturing contributing the largest share at 25.47%.
Mining and quarrying followed with 18.37%, while information and communication accounted for 15.07% of the total collection.
On the other hand, sectors such as accommodation, food services, and financial activities showed the least growth.
The NBS highlighted that accommodation services had a decrease of 73.32%, while financial activities dropped by 70.04%.
The CIT collection figures reflect the ongoing economic activity and business climate in Nigeria during the third quarter.
At the same time, tax reform bills under discussion aim to support small businesses and reduce tax burdens.
The bills propose increasing the tax threshold for small businesses and gradually reducing the CIT rate by 2026.
These changes aim to create a more favorable business environment while ensuring steady government revenue streams from corporations.
