Nigeria’s Company Income Tax (CIT) collections experienced a significant decline in the third quarter of 2024, falling to N1.77 trillion. This represents a 28.20% decrease compared to the N2.47 trillion recorded in Q2 2024, according to the latest report from the National Bureau of Statistics (NBS).
Despite the quarter-on-quarter drop, the year-on-year growth showed a more modest decline of just 1.37% from Q3 2023, providing some stability to the overall corporate tax revenue. The report reveals that local payments made up the majority of the CIT collections in Q3 2024, contributing N920.91 billion, while foreign payments added N852.29 billion.
Among the various sectors, the electricity, gas, steam, and air conditioning supply sector saw the highest growth, with a remarkable increase of 47.51%. This was followed by public administration, defense, and compulsory social security, which recorded a growth of 19.25%.
However, not all sectors performed well. Accommodation and food service activities experienced the steepest decline, with a growth rate of -73.32%, followed closely by financial and insurance activities, which contracted by -70.04%.
In terms of sectoral contributions to CIT, the manufacturing sector was the largest contributor, accounting for 25.47% of the total collections in Q3 2024. This was followed by the mining and quarrying sector at 18.37%, and information and communication at 15.07%.
On the other hand, sectors like activities of households as employers contributed the least, accounting for just 0.004%, followed by water supply, sewerage, waste management, and remediation activities at 0.03%, and activities of extraterritorial organizations and bodies at 0.08%.
This decline in CIT collections comes amid ongoing economic challenges, with mixed sectoral performances highlighting the uneven recovery across Nigeria’s corporate landscape.
