FIRS collects N1.75 trillion (115.9% growth) in Company Income Taxes in one year

Nigeria’s Company Income Tax (CIT) collection increased by 115.90% increase in one year from N810.19 billion recorded in the Q3 Of 2022 to its current of N1.75 trillion for the Q3, of 2023.

This is according to the National Bureau of Statistics, (NBS) latest CIT collection report for Q3 2023.  

On a quarter-on-quarter basis, the CIT collection rose by 14.27% from N1.53 trillion recorded in Q2, 2023 to the current figure for the third quarter.  

Growth in CIT collection by sectors 

CIT collection for the education sector saw the highest growth recording 59.60%, followed by public administration and defence, compulsory social security with 57.04%.  

On the other hand, activities of households and undifferentiated goods and services produced for households recorded the most decline in CIT collection receipt with a –74.34% growth rate followed by sewage, waste management and remediation activities with a -73.25% drop.  

CIT collection by sector 

In terms of sectoral contribution to the CIT collection for the quarter under review, the information and communication sector recorded the highest contribution with 26.18% followed by the manufacturing sector with 23.90% and mining and quarrying with 11.86%.  

Together, these three sectors contributed 61.94% to the CIT pool for the quarter. This amounts to around N1.08 trillion of the total N1.75 trillion CIT collection for the quarter.  

However, the manufacturing and ICT sectors’ CIT collection for the quarter dropped from what was recorded in the second quarter.

For Q2, 2023, CIT collection from the manufacturing sector stood at N262.73 billion. For this quarter, the figure is N155.72 billion.  

The ICT sector recorded a Company Income Tax payment of N208.10 billion in Q2. This figure fell to N170.56 billion in the quarter under review.  

CIT collection from the Financial and insurance sector activities dropped from N250.77 billion in Q2 to N68.46 billion for the period under review.  

The transportation and storage sector’s CIT for the period also dropped from N45.01 billion in Q2 to N15.16 billion in Q3.  

For the agricultural sector, there was only a little difference in its CIT collection for the period under review and the second quarter. It recorded a CIT payment of N13.31 billion in Q3, of 2023.  

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