Nigeria’s Company Income Tax (CIT) collections recorded a notable decline in the first quarter of 2026, as new data from the National Bureau of Statistics (NBS) shows that total revenue dropped to N1.37 trillion. This represents an 8.08% decrease compared to the N1.49 trillion recorded in the previous quarter, raising fresh concerns about corporate earnings momentum and broader fiscal stability.
The report revealed a sharp split between domestic and foreign contributions to tax revenue. Domestic CIT stood at N538.91 billion, while payments from foreign companies accounted for a larger share at N828.82 billion, highlighting the continued importance of international corporate activity in Nigeria’s tax base.
Sectoral performance showed mixed outcomes across the economy. The strongest growth came from water supply, sewage, waste management and remediation activities, which surged by 485.71%, followed by households acting as employers and producing goods for their own use, which grew by 197.04%. However, not all sectors performed positively, as construction recorded a steep contraction of -63.15%, while agriculture, forestry, and fishing also posted weaker growth at 73.52%.
In terms of contribution to total tax revenue, the financial and insurance sector led the pack with 24.73%, followed by mining and quarrying at 16.06%. At the lower end of the scale, household-related activities contributed just 0.01%, while extraterritorial organizations and water-related services accounted for marginal shares, reflecting uneven tax contributions across industries.
On a year-on-year basis, the outlook appears even more challenging, with CIT collections declining by 31.05% compared to Q1 2025. Analysts may interpret this as a sign of shifting economic pressures, changing corporate profitability trends, and potential structural issues in key sectors of the Nigerian economy.
source: newtelegraph