The biting economic hardship has dragged company income tax (CIT) down to N1.77 trillion in the third quarter of 2024 (Q3).

This is a 28.20 percent drop compared to the N2.47 trillion in Q2 2024. However, on a year-on-year basis, CIT collections in Q3 2024 increased by 1.37 percent from the N1.75 trillion recorded in Q3 2023.

Company Income Tax, also known as Corporate Tax, is a tax levied on the profits made by companies operating in Nigeria. It is regulated by the Companies Income Tax Act (CITA) under the supervision of the Federal Inland Revenue Service (FIRS).

Following the unfriendly business climate occasioned by the economic reform programmes of the present administration, many businesses have shut down, while some have scaled down their operations.

Additionally, it was reported that about eight multinational companies left the country within the last year, citing a harsh operating environment that led to a drop in profits.

The National Bureau of Statistics (NBS) reports that local payments received were N920.91 billion, while foreign CIT payments contributed N852.29 billion during the period under review.

On a quarter-on-quarter basis, according to NBS, electricity, gas, steam, and air conditioning supply recorded the highest growth rate with 47.51 percent, followed by public administration and defense, compulsory social security with 19.25 percent.

Accommodation and food service activities had the least growth rate with –73.32 percent, followed by financial and insurance activities with –70.04 percent.

“In terms of sectoral contributions, the top three largest shares in Q3 2024 were manufacturing with 25.47 percent, followed by mining and quarrying with 18.37 percent, and information and communication with 15.07 percent,” NBS said.

The report says the activities of households as employers, undifferentiated goods- and services-producing activities of households for their own use recorded the least share with 0.004 percent, followed by water supply, sewerage, waste management, and remediation activities with 0.03 percent, and activities of extraterritorial organizations and bodies with 0.08 percent.