BREAKING: Nigeria’s Company Income Tax Jumps 38% in First Half of 2025 — NBS Report
Story: Written by Peterson November 28,2025
Nigeria’s Company Income Tax (CIT) revenue recorded a strong surge in the first half of 2025, rising by 38%, according to new data released by the National Bureau of Statistics (NBS).
The sharp rise was driven largely by local companies, whose tax remittances grew significantly, even as contributions from foreign firms declined.
CIT revenue expanded from ₦1.98 trillion in Q1 to ₦2.78 trillion in Q2, marking a 40% quarter-on-quarter jump. On an annual basis, Q2 collections increased by 13% compared with the ₦2.47 trillion generated in the same quarter of 2024.
The NBS breakdown shows that domestic companies were responsible for most of the growth. Their CIT payments spiked from ₦646.51 billion in Q1 to ₦2.31 trillion in Q2, representing a staggering 250% quarter-on-quarter increase. Year-on-year, local remittances rose 71%, higher than the ₦1.34 trillion recorded in Q2 2024.
Foreign companies went in the opposite direction. Their tax payments fell sharply by 64.9%, dropping from ₦1.34 trillion in Q1 to ₦469.36 billion in Q2. Compared to Q2 2024, foreign remittances were down 58% from ₦1.12 trillion.
Financial Sector Tops Domestic Contributor
The financial and insurance industry remained the highest contributor to domestic CIT in Q2, paying ₦1.02 trillion, which represents 44% of all local company tax revenue.
NBS attributed the sector’s growth to bank recapitalisation, improved foreign exchange liquidity, and higher interest earnings. Its Q2 2025 tax payments rose 166% from ₦383.57 billion in Q2 2024.
The manufacturing sector came next with ₦360.20 billion, reflecting a 62% increase from its ₦221.97 billion contribution a year earlier.
Mining and quarrying followed with ₦212.27 billion, representing 24% year-on-year growth.
