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Tax: FG generates N1.34trn from CIT in nine months


  • N103.24bn received from financial institutions

Nigeria generated N1.34trillion from Company Income Tax (CIT) in the first nine months of 2021 as against N1.1trillion and N1.3trillion generated in the correspond-ing periods of 2020 and 2019 respectively, findings by New Telegraph show.

According to the Value Added Tax (VAT) and Company Income Tax (CIT) Q3’21 report released by the National Bureau of Statistics (NBS) at the weekend, CIT generated by the country increased from N392.65 billion in Q1’21 to N472.07 billion and N472.52 billion in Q2 and Q3’21 respectively.


This means that a total sum of N1.34trillion was  generated as CIT in the first nine months of this year. CIT is a tax on the profits of registered companies in Nigeria. It also includes the tax on the profits of foreign companies carrying on any business in the country

While resident companies are liable to CIT on their worldwide income, nonresident firms are subject to CIT on their Nigeria-source income.


Currently, the CIT is fixed at the rate of 30 per cent for companies having more than N100 million turnover. It is also charged at the rate of 20 per cent for companies with a turnover between N25 million and N100 million.

However, with the takeoff of the Finance Act 2020, companies having less than N25 million turnover, are not liable to pay CIT.


New Telegraph’s analysis of data obtained from the NBS shows that the government, through the Federal Inland Revenue Service (FIRS) usually generates the bulk of the CIT from activity in key sectors such as Breweries, Bottling and Beverages, Professional Services, Information and Communication, Manufacturing, Mining and Quarrying as well as Banks & Financial Institutions.


For instance, in its latest CIT report, the CIT stated that “in terms of sectoral distribution, Breweries, Bottling and Beverages activity; Professional Services activity; and State Ministries & Parastatals accounted for the top three largest share of CIT collections in Q1’21 with N23.26 billion (15.27%), N18.17 billion (11.93%) and N17.35 billion (11.39%) respectively.


“Overall, Local collections stood at N152.33 billion, Other payments amounted to N55.85 billion, while foreign CIT payment was N184.47 billion. In second quarter 2021, activity of Professional Services;


Other manufacturing; and Banks & Financial Institutions stood top three collections with N130.09 billion (31.14%), N87.27 billion (20.89%) and N60.01 billion (14.36%) respectively. “Of the aggregate, Local recorded N417.74 billion, OtherPaymentswasN2.72billion and Foreign CIT Payment contributed N51.61 billion.


Third quarter 2021 recorded Manufacturing activity (N64.48 billion); Information and Communication activity (N58.15 billion); and Mining & Quarrying activity (N36.01 billion) as the top three largest share of revenue at 22.08 per cent, 19.91 per cent and 12.33 per cent respectively.”


A breakdown of the data also indicates that a total of N103.24billion was generated as CIT from the banks and financial institutions sector in the first nine months of this year.


Specifically, the figures show that N9.3billion was generated as CIT from the sector in Q1’21 compared with N60.01billion and N33.98billion in Q2 and Q3’21 respectively




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