Nigeria records 38% growth in Company Income Tax in H1 2025

Nigeria’s National Bureau of Statistics has reported a remarkable 38 percent growth in Company Income Tax (CIT) revenue in the first half of 2025, underscoring the government’s success in revenue mobilisation and the resilience of the corporate sector amid economic challenges. The increase reflects both improved tax compliance by businesses and the ongoing reforms in tax administration aimed at broadening the tax base and enhancing efficiency in collection.

According to the NBS, the surge in CIT receipts was driven by increased earnings among major corporations, enhanced monitoring of taxable activities, and stricter enforcement of tax obligations. The financial and telecommunications sectors contributed significantly, supported by strong corporate performance, while industrial and manufacturing firms also recorded notable contributions due to improved output and revenue growth. Analysts observed that this growth signals renewed confidence in the economy, with companies performing well enough to meet their statutory tax obligations.

The data indicates that federal and state authorities have intensified efforts to ensure compliance among registered companies. Enhanced digitalisation of tax processes, improved taxpayer education, and targeted audits have played a key role in capturing previously under-reported income. Tax authorities reportedly implemented more robust reporting systems, allowing for timely assessment, deduction, and remittance of CIT, which has also contributed to the uptick in collections.

Government officials described the 38 percent increase as a major achievement, highlighting the importance of CIT in funding developmental projects, infrastructure, and social services. They emphasised that the growth in tax revenue not only strengthens the federal treasury but also enables states and local governments to undertake critical initiatives that support economic growth, employment, and poverty reduction. The officials further noted that the trend reflects a healthier corporate sector capable of contributing meaningfully to national development.

The surge in CIT also aligns with broader fiscal policy objectives aimed at reducing Nigeria’s reliance on oil revenue. By increasing non-oil tax collections, the government seeks to diversify sources of revenue and ensure more sustainable funding for public expenditure. Analysts argue that the growth demonstrates progress toward creating a more resilient fiscal framework that can withstand fluctuations in global commodity markets.

In addition to compliance measures, improved economic activity has played a pivotal role. Companies have reported higher turnover as domestic demand strengthens and export opportunities expand. Sectors such as manufacturing, ICT, and services have benefited from favourable policy measures and infrastructural improvements, which in turn have contributed to higher taxable income and increased CIT remittances.

Experts noted that while the growth is commendable, sustaining this trajectory will require continued efforts to improve tax administration, expand coverage to informal businesses, and simplify compliance processes. Reducing bureaucratic bottlenecks and ensuring transparency in the use of tax revenue are expected to incentivise greater voluntary compliance among corporate taxpayers.

The NBS data also indicated that a significant portion of the increase came from medium- and large-scale enterprises, which have been better positioned to benefit from government incentives, infrastructure support, and improved market conditions. Small businesses, while contributing less proportionally, have also shown steady compliance improvements through initiatives such as tax sensitisation and digital payment platforms.

Stakeholders welcomed the report, describing the growth as a positive indicator of Nigeria’s fiscal health and a sign that reforms in revenue administration are yielding tangible results. They argued that the improvement in CIT collection reflects not only better enforcement but also stronger corporate governance and financial discipline within Nigerian companies.

Moving forward, authorities plan to build on this momentum by introducing additional reforms that encourage tax compliance, reduce evasion, and further enhance the efficiency of collection systems. Emphasis will also be placed on integrating technology to track taxable activities in real time, thus ensuring more accurate and timely remittances.

The 38 percent growth in Company Income Tax in the first half of 2025 is therefore a milestone that signals improved government revenue, increased corporate accountability, and a strengthening fiscal landscape. It is expected to provide the necessary funding for ongoing development projects, support economic diversification efforts, and reinforce investor confidence in Nigeria’s financial and business environment.

With continued focus on compliance, digitalisation, and enforcement, the CIT revenue trajectory is projected to remain robust, contributing to a more sustainable and resilient economic framework for the country.