Company income tax paid by local firms up by 249% in Q2 2024

Company Income Tax payments by local firms increased by 249.2 percent in the second quarter of 2024.

This is according to the latest company income tax (CIT) report by the National Bureau of Statistics (NBS).

The CIT is levied on the profits made by companies operating in Nigeria. It is regulated by the Companies Income Tax Act (CITA) and enforced by the Federal Inland Revenue Service (FIRS).

The tax is charged at 30 percent for companies with more than N100 million in turnover, and 20 percent for companies with a turnover ranging between N25 million and N100 million.

According to the NBS, local companies contributed N1.35 trillion in taxes to the federal government in Q2, compared to N386.49 billion in the previous quarter.

While foreign firms operating in Nigeria contributed N1.72 trillion in Q2 — an increase of 87.2 percent compared to the N1.12 trillion reported in Q1.

The NBS report showed that the agricultural sector contributed the highest company income tax in Q2, showing a remarkable 474.50 percent increase from the previous quarter.

“On a quarter-on-quarter basis, agriculture, forestry, and fishing recorded the highest growth rate with 474.50%, followed by financial and insurance activities and manufacturing with 429.76% and 414.15%, respectively,” the report said.

“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use, had the lowest growth rate with -30.22%, followed by activities of extraterritorial organizations and bodies with -15.67%,” NBS said.