Here are 10 sectors that paid most taxes in Q2

The Federal Government’s revenue from Company Income Tax (CIT) recorded a growth rate of 150.8 percent in the second quarter of this year, new data has shown.

According to the National Bureau of Statistics (NBS) data, the government revenue increased to N2.47 trillion in Q2 from N984.61 billion in Q1 of this year. On a year-on-year basis, it increased by 59.52 percent from N1.55 trillion in Q2 2023.

“Local payments received were N1.35 trillion, while Foreign CIT payment contributed N1.12 trillion in Q2 2024,” it disclosed.

The report disclosed that in Q2, Agriculture, forestry and fishing recorded the highest growth rate with 474.50 percent, followed by Financial and insurance activities and manufacturing with 429.76 and 414.15 percent respectively.

While activities of households as employers, undifferentiated goods and services-producing activities of households for own use had the lowest growth rate with a negative 30.22 percent followed by Activities of extraterritorial organisations and bodies with a negative 15.67 percent.

It further disclosed that “In terms of sectoral contributions, the top three largest shares in Q2 2024 were Financial and insurance activities with 15.53 percent; manufacturing with 8.99 percent; and Information and communication with 7.84 percent.”

CIT, also known as corporate tax, is a levy the government imposes on a company’s income.

The CIT rate is hinged on zero percent for companies with gross turnover of N25 million or less, 20 percent for companies with gross turnover greater than N25 million and less than N100 million, and 30 percent for large companies above N100 million.

Analysis of individual sectors

Financial and insurance activities

The sector witnessed a 429.76 percent increase in its CIT contributions, rising to N383.5 billion in Q2 from N72.4 billion in the previous quarter.

Manufacturing

In the year’s second quarter, company income tax from the manufacturing sector rose to N221.9 billion. However, manufacturers paid 414.1 percent more tax from N43.1 billion in the previous quarter.

Information and communication

The contribution of the information and communication sector to the federal government increased to N193.6 billion in the second quarter of the year. However, the sector paid 414.2 percent more in taxes compared to the N48.5 billion it paid in the previous quarter.