The Nigerian manufacturing sector has reported a notable increase in tax contributions, reaching a nine-month high of N405.86 billion in the second quarter of 2024 despite ongoing economic challenges.
According to the National Bureau of Statistics. total tax payments by manufacturers, encompassing both Company Income Tax and Value Added Tax amounted to N405.86 billion in Q2 2024.
This figure represents an 84.1% increase from the N220.35 billion recorded in Q1 2024, although it is a slight 2.1% decrease compared to the N414.51 billion collected in Q2 2023.
The CIT component saw a significant rebound, rising to N221.97 billion, a 413.9% increase from the N43.17 billion collected in Q1 2024. Despite this recovery, CIT remains 15.5% lower than the N262.73 billion reported in Q2 2023.
VAT contributions also saw growth, reaching N183.89 billion in Q2 2024, up 3.8% from Q1 2024’s N177.17 billion and a 21.1% increase from the N151.78 billion collected in Q2 2023.
Manufacturers accounted for 8.99% of the total CIT and 11.78% of the total VAT in Q2 2024, underscoring their significant role in Nigeria’s fiscal framework and highlighting their position as major contributors to both CIT and VAT for the quarter.
It was previously reported that Nigeria’s manufacturing sector experienced a significant contraction in its contribution to Gross Domestic Product (GDP), with a 20.95% decline from the end of 2023 through the second quarter of 2024.
This downturn in the first half of 2024 underscores the sector’s vulnerabilities, particularly amid ongoing economic challenges.
