Nigeria’s Company Income Tax (CIT) revenue rose sharply in the second quarter of 2025, hitting N2.78 trillion.
This is according to the latest sectoral report released by the National Bureau of Statistics (NBS).
The figure represents a significant 40.27% increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.
The NBS report revealed that domestic CIT payments accounted for the bulk of the revenue, contributing N2.31 trillion, while foreign CIT collections stood at N469.36 billion during the period under review.
According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29%, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.
This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%. Activities of households as employers also surged by 526.79%, although their overall contribution to total CIT remained negligible.
On the flip side, some sectors experienced sharp declines in CIT remittances. Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively. The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.
In terms of contribution to total CIT revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows. Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity. Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.
At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%.
Despite economic headwinds, year-on-year CIT collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.
CIT collection in the second quarter of 2024 rose by 150.83% to N2.47 trillion.
In the first three months of the year, CIT collection stood at N984.61 billion.
According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion.
On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.