Arthur Eriye
New data released by the National Bureau of Statistics (NBS) shows that the federal government’s Company Income Tax (CIT) collection in the second quarter of 2024 saw a significant increase of 150.83%, reaching N2.47 trillion.
In comparison, company income tax collection in the first quarter of the year amounted to N984.61 billion.
The NBS report reveals that local payments accounted for N1.35 trillion, while foreign CIT payments contributed N1.12 trillion during the period under review. The agriculture, forestry, and fishing sectors witnessed the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
On the flip side, household activities as employers and undifferentiated goods- and services-producing activities for own use experienced a decline of 30.22%, making it the sector with the lowest growth rate. Extraterritorial organizations and bodies also saw a decrease of 15.67%.
In Q2 2024, the top three sectors contributing the largest shares were financial and insurance activities at 15.53%, manufacturing at 8.99%, and information and communication at 7.84%.
Conversely, household activities as employers and undifferentiated goods- and services-producing activities for own use had the smallest share at 0.00%, followed by water supply, sewerage, waste management, and remediation activities at 0.02%, and extraterritorial organizations and bodies at 0.03%.
Compared to Q2 2023, CIT collections in Q2 2024 saw a year-on-year increase of 59.52%, rising from N1.55 trillion to N2.47 trillion.
In the first quarter of the year, CIT collection experienced a decline of 12.87% compared to the fourth quarter of 2023. This decline is believed to be a result of the nation’s ongoing macroeconomic challenges, including high inflation, exchange rate instability, rising input costs, and other related factors.
The spike in CIT collection in Q2 can be attributed to the significant increase in foreign Company Income Tax payments, which rose by 87.24% to N1.11 trillion compared to Q1 2024, more than doubling the amount compared to the same period last year.
It is worth noting that there has been a consistent increase in CIT collection during the second quarter of the year, dating back to Q2 2021.
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