The latest data shows that the Federal Government’s revenue from Company Income Tax (CIT) grew by 150.8 percent in the second quarter of the year. According to the National Bureau of Statistics (NBS), the government’s revenue increased to N2.47 trillion in Q2 from N984.61 billion in Q1. Year-on-year, there was a 59.52 percent increase from N1.55 trillion in Q2 2023.
The report indicates that Agriculture, forestry, and fishing had the highest growth rate at 474.50 percent, followed by Financial and insurance activities and manufacturing at 429.76 and 414.15 percent, respectively. On the other hand, activities of households as employers and undifferentiated goods and services-producing activities of households had the lowest growth rates.
The top three sectors contributing to CIT in Q2 2024 were Financial and insurance activities, manufacturing, and Information and communication. The CIT rate varies based on company turnover, with rates ranging from zero percent to 30 percent.
Here is a breakdown of the CIT contributions from different sectors in Q2:
– Financial and insurance activities saw a 429.76 percent increase, contributing N383.5 billion.
– Manufacturing contributed N221.9 billion, with a 414.1 percent increase.
– Information and communication contributed N193.6 billion, with a 414.2 percent increase.
– Mining and Quarrying contributed N170.7 billion, representing a 110.9 percent increase.
– Wholesale and retail trade, repair of motor vehicles and motorcycles contributed N74.2 billion, with a 359.7 percent increase.
– Transportation and storage contributed N52.4 billion, a 306 percent increase.
– Public administration and defence, compulsory social Security contributed N51.9 billion, up by 21.8 percent.
– Other Service Activities contributed N40.2 billion, a 251.7 percent increase.
– Construction contributed N32.7 billion, a 208.4 percent increase.
– Professional, scientific, and technical activities contributed N30.1 billion, a 166.7 percent drop from the previous quarter.
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