Company Income Tax Drops By 50% To N1.49trn In Q4 2025 – NBS

Nigeria’s Company Income Tax (CIT) collections recorded a sharp decline in the fourth quarter of 2025, falling by almost half to N1.49 trillion from N2.96 trillion posted in the preceding quarter, latest data from the National Bureau of Statistics (NBS) has shown.

This shows a 49.81 per cent quarter-on-quarter contraction, a significant slowdown in corporate tax inflows within the period under review.

The development reflects the impact of shifting macroeconomic conditions as well as possible seasonal adjustments in corporate earnings and remittances by companies operating in the country.

Despite the steep quarterly drop, the data revealed an improvement on a year-on-year basis, with CIT collections rising by 13.38 per cent compared to the corresponding period in 2024.

A closer look at the data shows that contributions from domestic and foreign sources remained relatively balanced during the quarter.

Domestic Company Income Tax accounted for N819.83 billion, while foreign CIT payments stood at N668.21 billion, reflecting sustained participation by both local and international firms in the tax net.

Further breakdown of the figures showed mixed performance across sectors of the economy. Activities of extraterritorial organisations and bodies recorded the strongest growth, rising by 75.15 per cent, followed by the education sector with a 54.20 per cent increase, and real estate which grew by 27.25 per cent within the period.

However, several key sectors experienced notable contractions, weighing on overall tax performance.

The accommodation and food services sector recorded the steepest decline at 67.11 per cent, while household employment fell by 63.49 per cent.

The mining and quarrying sector also posted a significant drop of 49.63 per cent, reflecting pressures in extractive activities during the quarter.

In terms of contribution to total CIT revenue, the financial and insurance sector maintained its lead, accounting for 18.74 per cent of total collections.

This was followed by the manufacturing sector at 17.30 per cent and mining and quarrying at 15.04 per cent, reinforcing their importance as major drivers of government tax revenue.

Meanwhile, activities of households as employers contributed 0.002 per cent, while water supply, sewerage, and waste management accounted for 0.04 per cent. Extraterritorial organisations, despite recording strong growth, contributed just 0.17 per cent to the total tax pool.