Nigeria generates N2.47tr from CIT in Q2 2024

Despite the economic crisis ravaging Nigeria as a result of high inflation and forex volatility, the country generated N2.47 trillion from company income tax (CIT), in the second quarter of 2024. This amount is 150.83 per cent higher than N984.61 billion generated in the first quarter 2024 and 59.52 per cent higher than the N1.55 trillion generated in the second quarter 2023.

The National Bureau of Statistics (NBS), in its second quarter 2024 separate CIT and VAT reports released on Monday noted that the country also earned N1.56 trillion as value added tax (VAT) within the three months that formed the second quarter 2024. This figure is 9.11 per cent higher than the N1.43 trillion it earned in the first quarter, and 99.82 per cent higher than the N781.35 billion recorded in the second quarter 2023.

NBS noted that local CIT payments received during the period were N1.35 trillion, while foreign CIT payments contributed N1.12 trillion in Q2 2024. On a quarter-on-quarter basis Agriculture, forestry and fishing recorded the highest growth rate with 474.50 per cent, followed by Financial and insurance activities and manufacturing with 429.76 per cent and 414.15 respectively.

The report noted that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with -30.22 per cent followed by Activities of extraterritorial organisations and bodies with -15.67 per cent.

In terms of sectoral contributions, the top three largest shares in Q2 2024 were Financial and insurance activities with 15.53 per cent; manufacturing with 8.99 per cent, and Information and communication with 7.84 per cent.

“Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 percent, followed by water supply, sewerage, waste management, and remediation activities with 0.02 per cent and activities of extraterritorial organisations and bodies with 0.03 per cent,” the report said.

It said local VAT payments recorded were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

“On a quarter-on-quarter basis,” the report said. “Human health and social work activities recorded the highest growth rate with 98.44 percent, followed by agriculture, forestry and fishing with 70.26 per cent, and water supply, sewerage, waste management and remediation activities with 59.75 per cent.”