With N455bn, financial sector recorded highest contribution to CIT revenue in H1 2024

By Mariam Abeeb

In the first half of 2024, Nigeria’s financial and insurance, and manufacturing sectors recorded the highest contributions to the country’s company income tax (CIT) revenue.
According to recent data from the National Bureau of Statistics (NBS), the financial and insurance sector recorded about N455.98 billion — the highest in CIT payment within the period — while the manufacturing sector followed closely with N265.14 billion.
The CIT, also known as corporate tax, 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).
Currently, 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, the mining and quarrying sector also made a significant contribution of N251.65 billion, while N242.2 billion was received from the information and communication sector.
The bureau also said public administration and defence contributed N94.68 billion to Nigeria’s CIT revenue in the first six months of the year.
Further analysis showed that the CIT collected from local companies amounted to N1.73 trillion in H1 2024. The figure included N386.49 billion in Q1 and a substantial increase of N1.35 trillion in Q2.
For foreign payments, according to the report, stood at N1.72 trillion, propelled by N598.13 billion recorded in Q1 and N1.12 trillion in Q2.
Combined, the foreign and local CIT payments reached N3.45 trillion in H1 2024, with a contribution of N984.61 billion in Q1 and N2.45 trillion in Q2.