Nigeria’s company income tax earnings drop to N1.13tr

IN what seems like a direct consequence of the economic crisis that has forced many companies to either shut down or scale down operations, while others exit, Nigeria could only generate N1.13 trillion in the fourth quarter of 2023 as Company Income Tax ( CIT). The figure is 35.40 per cent lower than the N1.75 trillion generated in the previous quarter.

The National Bureau of Statistics reported that local payments were N533.93 billion, while foreign CIT contributed N596.10 billion during the period.

On a quarter- on- quarter basis, electricity, gas, steam, and air conditioning supplies recorded the highest growth rate with 79.65 per cent, followed by the construction sub- sector, with 57.86 per cent.

The document showed that activities in the Information and Communication Technology ( ICT) industry declined by 69.44 per cent, with the Public Administration, Defence and Compulsory Social Security sectors by 23.75 per cent, recording the lowest growth rate.

In terms of sectoral contributions, the top three were manufacturing ( 12.84 per cent); Financial and Insurance ( 6.25 per cent) and Mining and Quarry ( 5.90 per cent).

On the aggregate, Value Added Tax ( VAT) during the period under review was N1.20 trillion, representing a leap of 26.61 per cent on a quarter- on- quarter basis from N948.07 billion. However, on a year- on- year basis, VAT collection in Q4 2023 increased by 72.12 per cent from Q4 2022.

NBS said local payments were N630.00 billion, foreign VAT, N326.27 billion, while import VAT contributed N244.04 billion in Q4 2023.

The body observed: “On a quarter- on- quarter basis, agriculture, mining and quarry recorded the highest growth rate, with 63.75 per cent, followed by the other services activities, with 61.98 per cent.“