Nigeria’s Company Income Tax (CIT) for the second quarter of 2023 witnessed a growth rate of 226.40%, reaching N1.53 trillion compared to the first quarter of 2023, which had CIT revenue of N469.01 billion, according to the National Bureau of Statistics (NBS).
In the CIT data provided by the Federal Inland Revenue Service (FIRS), local CIT payments constituted a significant portion of the revenue, standing at N1.02 trillion, while foreign CIT payments amounted to N505.91 billion during Q2 2023.
Water supply, sewerage, waste management, and remediation activities showed the highest growth rate, which was 626.52%. Accommodation and food service activities followed closely with a growth rate of 585.11%. While education had the lowest growth rate at 15.48%, public administration and defense and compulsory social security had 25.46%.
In terms of sectoral contributions, the top three largest shares in Q2 2023 were the manufacturing sector, which made up 25.63% of the total, financial and insurance activities with 24.47%, and information and communication made up 20.30%.
On the other hand, certain sectors made relatively smaller contributions. The activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01%, followed by activities of extraterritorial organizations and bodies with 0.06%; and water supply, sewerage, waste management, and remediation activities with 0.09%. In addition, on a year-on-year basis, CIT collections in Q2 2023 increased by 114.28% from Q2 2022.
In comparison to the second quarter of 2022 (Q2 2022), CIT collections in Q2 2023 increased significantly by 114.28%.
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