Company income taxes rise 13.4% to N810.19 billion in Q3 2022

McKinsey and Company

The third quarter (Q3) of 2022 saw a total amount of N810.19 billion in company income tax (CIT) collections for the federal government.

When compared to the N714.40 billion that was collected in the second quarter (Q2) of 2022, this shows a growth rate of 13.41% quarter over quarter.

The National Bureau of Statistics (NBS) published a CIT report for the third quarter on Monday, December 19, 2023, that includes this disclosure.

According to the NBS’s report, local payments totaled N483.17 billion in the third quarter of 2022, while foreign CIT payments contributed N327.02 billion.

On a quarter-over-quarter basis, arts and entertainment record the highest growth rate.

“On the aggregate, Company Income Tax (CIT) for Q3 2022 was reported at N810.19 billion, indicating a growth rate of 13.41% on a quarter-on-quarter basis from N714.40 billion in Q2 2022. Local payments received were N483.17 billion, while Foreign CIT Payment contributed N327.02 billion in Q3 2022.

“On a quarter-on-quarter basis, Arts, entertainment, and recreation activities recorded the highest growth rate with 93.33%, followed by Agriculture, forestry, and fishing with 75.38%. On the other hand, Accommodation and food service activities had the lowest growth rate with – 64.81%, followed by Water supply, sewerage, waste management, and remediation activities with -64.75%.

Manufacturing records highest sectorial contribution

In terms of sectoral contributions, manufacturing accounted for the top three largest shares in Q3 2022, followed by information and communication (27.31%), financial & insurance (8.81%), and manufacturing (28.76%).

According to NBS, the activities of households acting as employers and undifferentiated households producing goods and services for their own consumption had the lowest share at 0.003%, followed by the activities of water supply, sewerage, waste management, and remediation at 0.05% and the activities of extraterritorial organizations and bodies at 0.11%.

It added, “On a year-on-year basis, CIT collections in Q3 2022 increased by 71.46% from Q3 2021.”

What you should know

N714.40 billion was reported as Nigeria’s Company Income Tax (CIT) for the second quarter of 2022.

According to NBS, the activities of Accommodation & Food Services experienced the highest growth rate, 481.93%, from quarter to quarter, followed by Information & Communication, 430.67%, and Transportation & Storage, 339.08%.

“Local payments received were N634.01 billion, while Foreign CIT payment contributed N80.39 billion in Q2 2022.

“On the other hand, Activities of extraterritorial organizations & bodies had the lowest growth rate with – 42.59%, followed by Activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80%.

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