FIRS Achieves Remarkable 115.9% Growth, Collecting N1.75 Trillion in Company Income Taxes in a Year

Infostride News Reports Remarkable 115.90% Surge in Nigeria’s Company Income Tax (CIT) Collection, Reaching N1.75 Trillion in Q3 2023

In a noteworthy economic development, Nigeria has experienced an impressive 115.90% year-on-year increase in Company Income Tax (CIT) collection, soaring from N810.19 billion in Q3 2022 to a remarkable N1.75 trillion in the corresponding period of 2023, as revealed by the latest CIT collection report from the National Bureau of Statistics (NBS).

Breaking down the figures on a quarter-on-quarter basis, the CIT collection witnessed a substantial 14.27% surge, climbing from N1.53 trillion in Q2 2023 to its current level in the third quarter.

Examining the growth in CIT collection across sectors, the education sector emerged as the frontrunner, experiencing an impressive 59.60% increase. Following closely were public administration and defense, compulsory social security, with a notable growth rate of 57.04%. Conversely, activities related to households and undifferentiated goods and services produced for households displayed the most significant decline in CIT collection, witnessing a sharp -74.34% growth rate, trailed by sewage, waste management, and remediation activities, which recorded a substantial -73.25% drop.

Delving into sectoral contributions to CIT collection for the quarter, the information and communication sector took the lead with a substantial 26.18%, closely followed by the manufacturing sector at 23.90%, and mining and quarrying at 11.86%. The combined contribution of these three sectors accounted for an impressive 61.94% of the total CIT collection, equivalent to approximately N1.08 trillion out of the total N1.75 trillion recorded for the quarter.

However, it is worth noting that both the manufacturing and information and communication technology (ICT) sectors experienced a decline in CIT collection compared to the preceding quarter. CIT collection from the manufacturing sector, which stood at N262.73 billion in Q2 2023, witnessed a decrease to N155.72 billion in the current quarter. Similarly, the ICT sector reported a decline from N208.10 billion in Q2 to N170.56 billion in the quarter under review.

Further dissecting the data, the financial and insurance sector witnessed a substantial drop in CIT collection, plummeting from N250.77 billion in Q2 to N68.46 billion for the current period. The transportation and storage sector also experienced a decline, with CIT dropping from N45.01 billion in Q2 to N15.16 billion in Q3. Conversely, the agricultural sector demonstrated relatively stable CIT collection, recording a payment of N13.31 billion in Q3 2023, with only a marginal difference compared to the second quarter.

In conclusion, the robust growth in Nigeria’s CIT collection signals a positive trend in the fiscal landscape, reflecting both sectoral strengths and challenges. As Infostride News continues to monitor economic indicators, these CIT figures provide valuable insights into the dynamic financial performance of various sectors within the Nigerian economy.