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.
Read also: Here are sectors that paid most tax in Q1
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.
Mining and quarrying
The Mining and Quarrying sector, the largest contributor, increased its CIT contributions to N170.7 billion in Q2, up 110.9 percent from N80.9 billion the previous quarter.
Wholesale and retail trade, repair of motor vehicles and motorcycles
The Wholesale and retail trade, repair of motor vehicles and motorcycles sector’s contribution to the federal government rose to N74.2 billion in the second quarter of the year. However, the sector paid 359.7 percent more in taxes than the N16.1 billion it paid in the previous quarter.
Transportation and storage
Company income tax from the transportation and storage sector rose to N52.4 billion in the second quarter of this year, a 306 percent increase from N12.9 billion in the previous quarter.
Public administration and defence, compulsory social security
The Public administration and defence, compulsory social Security increased its CIT contributions to N51.9 billion, up 21.8 percent from N42.6 billion the previous quarter.
Other service activities
The Other Service Activities sector contributed N40.2 billion in the second quarter, a 251.7 percent increase from N11.4 billion reported in the previous quarter.
The sector encompasses a broad range of services such as personal service, repair service, etc.
Construction
The construction sector contributed N32.7 billion in the second quarter, a 208.4 percent rise from N10.6 billion reported in the previous quarter.
Professional, scientific and technical activities
The Professional, scientific, and technical activities contributed N30.1 billion, a 166.7 percent drop from N11.2 billion reported in Q1.
