Zenith Leads, GTB Follows: 10 Banks Deposit Over N150bn in Taxes to Government Account

• Ten Nigerian banks paid over N155 billion in income tax to the federal government for 2022, a 33.50% increase from the previous year
• Zenith Bank paid the most income tax of N60.74 billion, followed by Guaranty Trust Holding Company
• The banks' contribution indicates their commitment to nation-building and the importance of tax compliance in Nigeria

Ten commercial banks operating in the country have contributed over N155 billion in income tax payments to the coffers of the Federal Government of Nigeria for 2022.

The amount marks a significant increase of 33.50% from the N116.54 billion paid by the banks during the previous fiscal year, as reported by their financial statements submitted to the Nigerian exchange.

The 10 banks that made the list include Zenith Bank, GTCO, UBA, Stanbic IBTC Holdings, FCMB, Fidelity Bank, Sterling Bank, Wema Bank, Unity Bank, and Jaiz Bank.

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What Nigeria's law says on income tax payment

Nigerian law requires large corporations with a gross turnover of over N100 million to pay a Company Income Tax rate of 30% on their profits to the Federal Government through the Federal Inland Revenue Service (FIRS).

Banks are also mandated to pay other taxes, such as Education Tax, Police Trust Fund levy, NASENI, NITDEF levy, Financial sector clean-up levy, and National Fiscal Stabilization levy.

List of the banks and tax payment

Here is a list of the income tax payments made by 10 commercial banks operating in Nigeria:

• Zenith Bank - N60.74 billion in 2022 compared to N35.82 billion in 2021
• GTCO - N31.87 billion in 2022 compared to N28.82 billion in 2021
• UBA - N30.60 billion in 2022 compared to N34.40 billion in 2021
• Stanbic IBTC Holdings - N19.54 billion in 2022 compared to N9.04 billion in 2021
• FCMB - N4.20 billion in 2022 compared to N1.33 billion in 2021
• Fidelity Bank - N4.90 billion in 2022 compared to N2.49 billion in 2021
• Wema Bank - N1.95 billion in 2022 compared to N3.45 billion in 2021
• Sterling Bank - N1.42 billion in 2022 compared to N959 million in 2021
• Jaiz Bank - N248.54 million in 2022 compared to N73.58 million in 2021
• Unity Bank - N117.20 million in 2022 compared to N158.88 million in 2021

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List of Nigeria's most valuable banks after Q1, 2023

In another report, the Nigerian banks with the highest market capitalisation for the first quarter of 2023 have been unveiled.

Zenith Bank and GT Bank retained their positions as the most highly valued commercial banks in the Nigerian market, which they held at the beginning of the year.

However, First Bank experienced a decrease in its market value during the same period.

Source: Legit.ng