Manufacturing Companies Lead as FG Generates N532bn from Company Income Tax in 3 Months of 2022

Manufacturing Companies Lead as FG Generates N532bn from Company Income Tax in 3 Months of 2022

  • The federal government has recorded a huge tax collection from companies in the last three months of 2022
  • This will come as a huge relief for the federal government amid dwindling oil revenue and piling up debt
  • Manufacturing companies led the table for the sectors that contributed the over N532 billion generated

The National Bureau of Statistics has revealed that the federal government of Nigeria generated a sum of N532.48 billion from Company Income Tax (CIT) in the first quarter of 2022.

It stated this in a recently Company Income Tax report published on its website and obtained by Legit.ng.

The report shows that the amount generated in the first quarter of 2022, is an increase of 35.6% compared to N392.65 recorded in Q1, 2021.

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Manufacturing Companies, Company Income Tax
Dangote Cement is one of the highest tax paying companies Credit: Dangote
Source: Getty Images

Details from NBS report

In the report, NBS noted that Nigeria generated a total of N209.13 billion from local companies, which is 19.2% lower than the N259.85 billion generated in the previous quarter. However, it is 37.3% higher than the N152.33 billion recorded in Q1 2021.

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Also, foreign CIT payment for the period under review was N323.35 billion, 263.5% and 75.3% higher than N88.96 billion and N184.47 billion recorded in Q4 and Q1 2021 respectively, while the FIRS recorded no revenue from other payments.

Sectors with the highest tax payment

The manufacturing sector topped the list of sectors with the highest CIT remittance in Q1 2022 with N44.56 billion, followed by the ICT sector with N29.35 billion, Nairametrics reports.

The financial and insurance sector remitted a sum of N25.51 billion as company income tax.

Fourth on the list was the mining and quarrying sector with N24.38 billion, public administration and defence, compulsory social security remitted N21.66 billion, while other service sector remitted N14.92 billion.

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Others on the list include wholesale and retail trade (N8.29 billion), transportation and storage (N7.96

Zenith, Gtbank lead list of Nigeria's most valuable banks

Meanwhile Legit.ng in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian banks closed at N194.5 billion.

In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.

Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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