Local companies drive 38% surge as foreign firms’ contributions plunge sharply, NBS data shows
Nigeria generated N4.76 trillion in Company Income Tax (CIT) in the first half of 2025, marking a significant jump powered largely by domestic companies, according to new figures released by the National Bureau of Statistics (NBS).
The latest numbers show that CIT earnings in the first six months of 2025 surpassed the N3.45 trillion collected in the same period in 2024, representing a 38 percent year-on-year increase.
CIT, one of the federal government’s major non-oil revenue streams, is imposed on the profits of both local and foreign companies operating in the country.
Revenue Climbs Sharply in Q2
According to NBS, CIT collections rose from N1.98 trillion in Q1 to N2.78 trillion in Q2 2025.
This also reflects a 13 percent year-on-year increase when compared to N2.47 trillion collected in the second quarter of 2024.
A major driver of the surge was the remarkable rise in local companies’ tax payments. Domestic firms remitted N646.51 billion in Q1, but that figure skyrocketed to N2.31 trillion in Q2, a staggering 250 percent quarter-on-quarter growth.
Year-on-year, CIT paid by local companies jumped by 71 percent, rising from N1.34 trillion in Q2 2024 to N2.31 trillion in Q2 2025.
Foreign Firms’ Contributions Decline
In contrast, foreign companies’ tax payments declined significantly. Their CIT contributions fell from N1.34 trillion in Q1 to N469.36 billion in Q2, representing a 64.9 percent quarter-on-quarter drop.
On a year-on-year basis, this category fell by 58 percent, down from N1.12 trillion in Q2 2024.
Financial Sector Leads Contributors
The financial and insurance sector emerged as the top CIT contributor in Q2 2025, remitting N1.02 trillion, accounting for 44 percent of all local company income tax for the quarter.
The sector’s performance, driven by ongoing banking recapitalisation, FX revaluation gains, and rising interest income, represents a 166 percent increase from the N383.57 billion recorded in Q2 2024.
The manufacturing sector followed with N360.20 billion, reflecting a 62 percent rise from the N221.97 billion paid in Q2 last year.
Mining and quarrying ranked third, contributing N212.27 billion, which represents a 24 percent year-on-year increase.
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