Company tax drops to N754bn amid turbulent economy



Uba Group

As the economy bites harder on Nigerians, revenue accruable to the government from companies is going down.

For instance, company income tax for the last quarter in 2022 was reported at N753.88 billion, indicating a negative growth rate of -6.95 percent on a quarter-on-quarter basis from N810.19 billion in Q3 2022.

Local payments received were N353.90 billion, while Foreign CIT Payment contributed N399.98 billion in Q4 2022.

On a quarter-on-quarter basis, the Water supply, sewerage, waste management and remediation activities recorded the highest growth rate with 57.40 percent, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 45.19 percent.

On the other hand, Information and communication activities had the lowest growth rate with – 65.75 percent, followed by Arts, entertainment and recreation activities with -64.09 percent.

In terms of sectoral contributions, the top three largest shares in Q4 2022 were manufacturing with 31.20 percent; financial & insurance activities with 12.96 percent and Information and communication activities with 12.77 percent.

Conversely, the activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the least share with 0.01 percent, followed by water supply, sewerage, waste management, and remediation activities with 0.12 percent; and activities of extraterritorial organizations and bodies with 0.14 percent. However, on a year-on-year basis, CIT collections in Q4 2022 increased by 116.75 percent from Q4 2021.