Nigeria’s Company Income Tax (CIT) collections skyrocketed in the second quarter of 2025, reaching a record N2.78 trillion. The latest data from the National Bureau of Statistics (NBS) shows a sharp 40.27% increase compared to the N1.98 trillion recorded in Q1, reflecting both stronger corporate earnings and improved compliance among businesses.
Domestic companies accounted for the majority of this surge, contributing N2.31 trillion, while foreign firms paid N469.36 billion during the quarter. Analysts say this growth underscores Nigeria’s gradual recovery in key economic sectors, despite lingering fiscal challenges and inflationary pressures.
The financial and insurance sector drove the largest gains, posting a staggering 772.29% growth quarter-on-quarter. This boom was fueled by higher profits across banks, fintech firms, and insurance companies. Wholesale and retail trade, including motor vehicle repairs, also expanded sharply by 538.38%, while household employers’ contributions jumped 526.79%, though they remain a tiny fraction of total CIT revenue.
Some sectors, however, struggled. Activities of extraterritorial organizations fell by 45.01%, while education, public administration, defence, and social security sectors recorded declines between 18% and 27%. These contractions highlight structural and fiscal challenges that continue to affect government-funded institutions across Nigeria.
Overall, financial and insurance activities led total CIT contributions with 44.13%, followed by manufacturing at 15.57% and mining and quarrying at 9.18%. Despite setbacks in some areas, year-on-year CIT revenue still grew 12.66% compared to Q2 2024, signaling steady, if uneven, improvements in Nigeria’s revenue mobilisation.
source: nairametrics