Nigeria’s company income tax rose significantly in the first half of 2025, reaching N4.76 trillion, according to new figures released by the National Bureau of Statistics (NBS). The surge in company income tax represents a 38% increase from the N3.45 trillion collected in the corresponding period of 2024, underscoring stronger compliance and improved performance among domestic firms.
Okay News reports that the NBS data shows domestic companies were the primary drivers of the growth in company income tax during the period.
CIT collections increased from N1.98 trillion in the first quarter to N2.78 trillion in the second quarter, marking a 40% quarter-on-quarter rise. Year-on-year, the second-quarter company income tax total rose 13% compared to the N2.47 trillion recorded in Q2 2024, reflecting continued momentum in tax receipts despite challenging economic conditions.
Domestic firms accounted for most of the expansion in company income tax revenue. Their contributions grew from N646.51 billion in Q1 to N2.31 trillion in Q2, representing a surge of more than 250%. Compared with the same period last year, domestic tax payments increased 71% from N1.34 trillion in Q2 2024.
By contrast, foreign companies reduced their company income tax payments sharply. Their contributions fell 64.9% quarter-on-quarter, declining from N1.34 trillion in Q1 to N469.36 billion in Q2. Year-on-year, foreign company remittances dropped 58% when compared to N1.12 trillion in Q2 2024, indicating declining profitability or reduced activity among offshore-linked entities.
The financial and insurance sector remained the largest contributor to domestic tax revenue in Q2, paying N1.02 trillion, equivalent to 44% of all local company income tax receipts. The NBS attributed the increase to banking recapitalisation, stronger foreign-exchange positions, and rising interest income. Payments from the sector rose 166% from N383.57 billion in Q2 2024.
Manufacturing followed with N360.20 billion, marking a 62% rise from N221.97 billion in the same period last year. Mining and quarrying contributed N212.27 billion, reflecting 24% year-on-year growth as firms in the sector reported stronger output and improved remittances.
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