By SpringNewsNG Date: April 25, 2025

Ten of Nigeria’s top commercial banks collectively paid N987.4 billion in corporate income tax to the Federal Government in the 2024 financial year, according to their audited financial statements filed on the Nigerian Exchange Limited.

The banks include Access Holdings, United Bank for Africa (UBA), First HoldCo Plc, Sterling Financial Holdings, Wema Bank, Zenith Bank, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, Fidelity Bank, and FCMB.

Corporate income tax, regulated by the Federal Inland Revenue Service (FIRS), is charged on the profits of registered companies in Nigeria. In 2024, most of the banks reported sharp increases in their tax remittances, reflecting strong earnings driven by higher interest rates and increased returns on government securities.

Below is a breakdown of the corporate taxes paid by the banks:

• UBA: N241.12bn (↑ 6.07% from N227.30bn in 2023)
• Zenith Bank: N201.62bn (↑ 468.16% from N35.47bn)
• Access Holdings: N159.26bn (↑ 109.51% from N76.01bn)
• GTCO: N175.03bn (↑ 205.48% from N57.29bn)
• Fidelity Bank: N82.42bn (↑ 306.99% from N20.30bn)
• First HoldCo: N58.66bn (↑ 108.89% from N28.17bn)
• Stanbic IBTC: N35.19bn (↑ 106.56% from N17.03bn)
• FCMB: N18.36bn (↑ 101.92% from N9.12bn)
• Wema Bank: N13.27bn (↑ 638.73% from N1.80bn)
• Sterling Financial Holdings: N2.48bn (↑ 118.45% from N1.13bn)

Financial experts have attributed this surge in tax remittances to improved profitability across the banking sector, spurred by a high-interest rate environment and a strong performance in government-backed securities.

Teslim Shitta-Bey, Chief Economist and Managing Editor at Proshare, explained that banks are reaping the benefits of the Federal Government’s increased borrowing through treasury bills and bonds.

“Banks are earning more from treasury instruments and retail lending. The higher yields have strengthened their balance sheets,” he said.

However, Shitta-Bey cautioned that the gains come with trade-offs. “The funds that could have been directed towards lending to the private sector or increasing dividend payouts are now largely invested in government securities. This crowding-out effect reflects a challenging business environment for the real economy.”

Despite strong bank performance, concerns persist about limited access to credit for businesses and the implications for private sector growth.

In the third quarter of 2024, revenue into the federation account grew by 7.48% to N6.86 trillion, supported in part by these higher tax contributions from financial institutions.