The National Bureau of Statistics (NBS) has disclosed that the federal government generated a total of N4.89 trillion as company income tax (CIT) in 2023.
This was contained in its recent CIT report for the fourth quarter (Q4) of 2023.
CIT is a tax on the profits of registered local and foreign companies operating in Nigeria.
The tax is currently charged at a 30 per cent rate for companies generating more than N100 million in turnover and 20 per cent for companies with a turnover ranging between N25 million and N100 million.
Details of the report show that the CIT collection rose by 73 per cent year-on-year, from N2.82 trillion in 2022.
In the latest CIT report, the NBS said in Q1 2023, the federal government had a total revenue of N469.01 billion and in Q2, the figure increased to NN1.55 trillion, while in Q3 of the same year, the CIT revenue increased to N1.75 trillion but had a 35 per cent decrease in Q4 to N1.13 trillion.
In 2023, local companies contributed N2.51 trillion, compared to N1.68 trillion in 2022, while foreign CIT payments amounted to N2.39 trillion in 2023, against N1.15 trillion the year before.
The manufacturing sector generated the highest CIT last year, recording N626.4 billion, indicating a 34 per cent increase from N468.6 billion collected in 2022.
The second-highest contributor to the CIT was the information & communication sector, which collected N466.6 billion in 2023 — marking a significant 29 per cent growth from N362.26 billion collected the year before.
The financial services industry, comprising financial institutions and insurance companies, witnessed a remarkable boom in CIT contribution, recording a 120 per cent increase from N208.93 billion in 2022 to N458.8 billion in 2023.
