Nigeria’s Company Income Tax (CIT) revenue surged to a record N2.78 trillion in the second quarter of 2025, marking a sharp 40.27% increase from the N1.98 trillion recorded in the previous quarter, according to new data released by the National Bureau of Statistics (NBS).
The impressive growth reflects improved tax compliance, stronger corporate earnings, and increased activity across key economic sectors.
Domestic Companies Drive Revenue Growth
The NBS report shows that domestic CIT payments accounted for the majority of the revenue:
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Domestic CIT: N2.31 trillion
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Foreign CIT: N469.36 billion
The significant rise underscores heightened profitability among Nigerian firms and a stronger enforcement drive by tax authorities.
Financial Sector Leads with Record Growth
Financial and insurance activities recorded the highest quarter-on-quarter growth, rising by an extraordinary 772.29%. The jump was driven by improved profitability across banks, insurance firms, and fintechs following strong half-year results.
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Other sectors with major growth include:
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Wholesale & retail trade; motor vehicle repairs: +538.38%
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Activities of households as employers: +526.79%
However, their overall contribution to total CIT remains relatively small.
Sectors with Declining CIT Contributions
Some sectors experienced notable declines:
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Extraterritorial organizations: –45.01%
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Education: –26.61%
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Public administration, defence & social security: –18.17%
The declines, especially in education and public administration, point to ongoing fiscal pressures in government-funded sectors.
Top Contributors to CIT Revenue
In terms of their share of total CIT revenue, the report shows:
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Financial & insurance activities: 44.13%
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Manufacturing: 15.57%
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Mining & quarrying: 9.18%
At the lower end:
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Activities of households as employers: 0.01%
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Extraterritorial organizations: 0.04%
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Water supply, waste management, remediation: 0.04%
Year-on-Year Growth Remains Positive
Despite economic headwinds, CIT revenue still grew by 12.66% year-on-year, compared to Q2 2024, signalling steady improvement in government revenue mobilisation.
Background Context
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In Q2 2024, CIT collection jumped by 150.83% to N2.47 trillion.
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Q1 2025 CIT revenue stood at N984.61 billion.
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Local payments in Q2 2024 amounted to N1.35 trillion, while foreign CIT contributed N1.12 trillion.
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In that same period, agriculture, financial services, and manufacturing posted the highest growth rates.
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