Nigeria’s Company Income Tax Hits N2.96T in Q3 2025

Nigeria’s National Bureau of Statistics (NBS) reports that Company Income Tax (CIT) collections rose to N2.96 trillion in the third quarter of 2025, marking a 6.55% increase from N2.78 trillion in Q2 2025.

The growth reflects stronger corporate earnings and improved business activity across key sectors of the economy.

Domestic CIT payments accounted for N1.21 trillion of the total, while foreign CIT payments contributed N1.75 trillion, showing continued profitability among multinational companies and cross-border operations. Overall, the quarter-on-quarter growth underscores steady tax compliance and corporate profitability.

Sectoral Performance

Sector contributions to CIT were uneven:

• Highest growth: Arts, entertainment, and recreation activities (41.98%) and Accommodation & food services (37.11%)
• Resilient sectors: Mining and quarrying (15.36%)
• Declining sectors: Households as employers (–83.88%), Financial & insurance activities (–79.72%), and Construction (–66.52%)

By overall contribution to total CIT collections:

• Manufacturing: 22.43%
• Mining & quarrying: 20.24%
• Financial & insurance activities: 17.11%
• Lowest contributors: Households as employers (0.003%), Water supply & waste management (0.04%), Extraterritorial organizations (0.07%)

Year-on-Year Growth and VAT Insights

Compared to Q3 2024, CIT collections surged 67.19%, reflecting policy reforms, broader tax administration, and stronger corporate earnings. Meanwhile, Value Added Tax (VAT) collections also increased to N2.28 trillion in Q3 2025, a 10.66% rise from Q2.

Across 2025, VAT allocations to the Federal Government, states, and LGAs rose to N7.73 trillion, up 26.46% from N6.11 trillion in 2024.

FG Introduces 1% Presumptive Tax for Informal Sector

The steady growth in both CIT and VAT highlights Nigeria’s efforts to broaden its tax base and strengthen public revenue streams while encouraging compliance among businesses and individuals.