Lagos, Nigeria – Nigeria’s electricity, gas, steam, and air conditioning supply sector contributed N62.12 billion (approximately $39.8 million) in Company Income Tax in 2025, a decline from N77.97 billion recorded in 2024, according to data released by the National Bureau of Statistics.
Okay News reports that quarterly tax contributions fluctuated significantly, with Q1 at N10.13 billion, Q2 rising sharply to N24.68 billion, Q3 at N15.47 billion, and Q4 declining to N11.84 billion. Overall Company Income Tax collections across all sectors fell to N1.49 trillion in Q4 2025 from N2.96 trillion in Q3, representing a 49.81 percent quarter-on-quarter decline.
Despite the quarterly drop, total Company Income Tax still recorded a 13.38 percent year-on-year increase compared to Q4 2024. In Q4 2025, domestic Company Income Tax accounted for N819.83 billion, while foreign Company Income Tax contributed N668.21 billion.
The performance of the power sector tax comes amid ongoing structural challenges in Nigeria’s energy value chain, including rising costs, infrastructure limitations, and liquidity issues. These challenges have continued to affect profitability and tax remittances from operators within the electricity supply industry.
In June 2025, President Bola Tinubu signed four major tax reform bills into law, including the Nigeria Tax Bill and the Nigeria Tax Administration Bill, aimed at enhancing tax administration and expanding government revenue over time. This power sector tax decline highlights sector-specific pressures despite broader resilience in Nigeria’s corporate tax base.
