Nigeria’s Company Income Tax collection jumped from N810.19 billion in the third quarter of 2022 to N1.75 trillion in the third quarter of 2023, a 115.90% increase in just one year.
The National Bureau of Statistics’ most recent CIT collection report for Q3 2023 made this revelation.
The CIT collection increased from N1.53 trillion in Q2, 2023 to the current amount for the third quarter, a 14.27% increase on a quarter-over-quarter basis.
The sector with the largest increase in CIT collection was education, at 59.60%; public administration and defense came in second, with 57.04%; and mandatory social security came in third.
However, with a growth rate of -74.34%, household activities and non-differentiated goods and services produced for households saw the biggest decline in CIT collection receipts. Sewerage, waste management, and remediation activities saw the second-largest decline, falling at a rate of -73.25%.
The information and communication sector contributed the most to the CIT collection for the reviewed quarter (26.18%), followed by the manufacturing sector (23.90%) and the mining and quarrying sector (11.86%).
For the quarter, the combined contribution of these three sectors to the CIT pool was 61.94%. This represents about N1.08 trillion of the N1.75 trillion in CIT that was collected during the quarter.
Nevertheless, the CIT collection for the quarter decreased in the manufacturing and ICT sectors compared to what was noted in the second quarter.
However, with a growth rate of -74.34%, household activities and non-differentiated goods and services produced for households saw the biggest decline in CIT collection receipts.
Sewerage, waste management, and remediation activities saw the second-largest decline, falling at a rate of -73.25%.
CIT collection from the manufacturing sector was N262.73 billion for the second quarter of 2023. The amount for this quarter is N155.72 billion.
In Q2, the ICT industry reported paying N208.10 billion in company income tax. This amount decreased to N170.56 billion during the examined quarter.
CIT collection for the period under review decreased from N250.77 billion in Q2 to N68.46 billion from activities in the financial and insurance sectors.
The CIT for the transportation and storage industry decreased over the same period, from N45.01 billion in Q2 to N15.16 billion in Q3.
The CIT collection for the agricultural sector during the period under review and the second quarter differed by very little. In Q3 of 2023, it reported a CIT payment of N13.31 billion.
