Nigeria’s company income tax surges 38% in H1 2025 – NBS

All income gained from trading is subject to tax

Nigeria generated N4.76 trillion in company income tax (CIT) in the first half of 2025, a 38% increase from the N3.45 trillion collected in the same period last year, according to new figures from the National Bureau of Statistics (NBS).

The growth was propelled almost entirely by domestic companies, whose tax payments rose sharply despite weaker contributions from foreign firms.

CIT collections climbed from N1.98 trillion in Q1 to N2.78 trillion in Q2, representing a quarter-on-quarter increase of 40%. Year-on-year, the Q2 total was up 13% from the N2.47 trillion posted in Q2 2024.

NBS data shows that domestic firms accounted for the bulk of the jump, with their CIT rising from N646.51 billion in Q1 to N2.31 trillion in Q2 — a quarter-on-quarter surge of more than 250%. Compared to the same period last year, domestic payments increased 71%, up from N1.34 trillion in Q2 2024.

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Foreign companies moved in the opposite direction. Their CIT contribution fell 64.9% quarter-on-quarter, dropping from N1.34 trillion in Q1 to N469.36 billion in Q2. Year-on-year, foreign tax payments slid 58% compared with N1.12 trillion in Q2 2024.

Financial sector leads contributors

The financial and insurance sector remained the top driver of domestic tax revenue in Q2, remitting N1.02 trillion — equivalent to 44% of all local CIT. The NBS attributed the sector’s gains to banking recapitalisation, improved FX positions and higher interest income. The sector’s tax payments were up 166% from N383.57 billion recorded in Q2 2024.

The manufacturing sector followed with N360.20 billion, a 62% increase from N221.97 billion a year earlier. Mining and quarrying ranked third with N212.27 billion, reflecting 24% year-on-year growth.

Oluwatosin Ogunjuyigbe is a writer and journalist who covers business, finance, technology, and the changing forces shaping Nigeria’s economy. He focuses on turning complex ideas into clear, compelling stories.

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