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Agriculture leads tax growth in Nigeria - BUSINESS INSIDER
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Understanding Company Income Tax (CIT) responsibilities is crucial for Nigerian firms to maintain compliance, avoid fines, and take advantage of any tax benefits. The Nigerian government relies on company income tax (CIT) to support infrastructure, public services, and national development. Fortunately, the country recorded an increase in its latest CIT collection.
- Q2 2024 CIT collection in Nigeria increased to N2.47 trillion, a significant rise from N984.61 billion in Q1 2024.
- Local payments for Q2 2024 CIT totaled N1.35 trillion, while Foreign CIT Payments contributed N1.12 trillion.
- Top sectors contributing to Q2 2024 CIT were financial and insurance activities, manufacturing, and information and communication.
Compared to the first quarter of the year, Q2 for Nigeria saw a significant increase in CIT payments.
According to a report by Nigeria's National Bureau of Statistics In total, Company Income Tax (CIT) for Q2 2024 was recorded at N2.47 trillion, representing a 150.83% quarter-on-quarter increase from N984.61 billion in Q1 2024.
There was also recorded growth compared to the same period last year which came in at N1.53 trillion.
For Q2 2024, local payments totaled N1.35 trillion, with Foreign CIT Payments contributing N1.12 trillion. Agriculture, forestry, and fisheries had the greatest quarterly growth rate (474.50%), followed by financial and insurance industries (429.76%) and manufacturing (414.15%).
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for personal use had the lowest growth rate of -30.22%, followed by activities of extraterritorial organizations and bodies at -15.67%.
“In terms of sectoral contributions, the top three largest shares in Q2 2024 were Financial and insurance activities with 15.53%; manufacturing with 8.99%; and Information and communication with 7.84%,” the report reads.
“Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by water supply, sewerage, waste management, and remediation activities with 0.02% and activities of extraterritorial organizations and bodies with 0.03%,” it adds.
On an annual basis, however, Q2 2024's CIT collections rose by 59.52% over Q2 2023's 1.55 trillion.
