Nigeria collected N4.76 trillion in company income tax in the first half of 2025, a 38 percent increase from the N3.45 trillion recorded in the same period of 2024, the National Bureau of Statistics said in its latest release.
The surge in Nigeria company income tax reflected a strong quarter-on-quarter recovery, with collections rising from N1.98 trillion in Q1 to N2.78 trillion in Q2, a 40 percent increase driven largely by domestic corporate payments.
Domestic companies accounted for the bulk of the upswing in Nigeria company income tax, with remittances jumping from N646.51 billion in Q1 to N2.31 trillion in Q2, a quarter-on-quarter rise of more than 250 percent.
By contrast, foreign firms’ contributions to Nigeria company income tax fell sharply, sliding 64.9 percent quarter-on-quarter from N1.34 trillion in Q1 to N469.36 billion in Q2 amid weaker activity and reduced declared taxable income.
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Year-on-year comparisons show domestic payments rose 71 percent versus Q2 2024, while foreign company tax payments were down 58 percent, underscoring a changing composition of Nigeria company income tax receipts.
The financial and insurance sector led contributors to Nigeria company income tax in Q2, remitting N1.02 trillion or roughly 44 percent of local corporate tax receipts, a performance the NBS linked to bank recapitalisation and improved foreign-exchange positions.
Manufacturing and mining were also significant, with manufacturing paying N360.20 billion — up 62 percent year-on-year — and mining and quarrying contributing N212.27 billion as commodity-driven revenues improved.
The NBS data suggest that policy-makers’ focus on boosting domestic activity is having fiscal effect, but the sharp decline in foreign firm contributions to Nigeria company income tax raises questions about foreign investment patterns and tax base resilience.
Analysts said the spike in domestic tax receipts could reflect one-off corporate adjustments, profit realisations and improved compliance, and they cautioned that sustaining Nigeria company income tax growth will depend on broader economic recovery and investor confidence.
Policy-makers will likely view the NBS figures as a timely revenue signal for budget planning, but they must weigh the structural volatility shown in the Q2 shift between domestic and foreign sources when framing medium-term fiscal and investment policies.
