In the second quarter (Q2) of 2025, Nigeria saw its company income tax (CIT) collections jump to ₦2.78 trillion, a 40.27 % increase from ₦1.98 trillion in Q1. Domestic companies accounted for the lion’s share of the growth, remitting ₦2.31 trillion, a massive surge that underscores improved profitability among Nigerian businesses this quarter.
The bulk of this tax haul came from the financial and insurance sector, followed by manufacturing and mining/quarrying, illustrating a broad-based recovery across key sectors. On a half-year basis (H1 2025), CIT revenue reached ₦4.76 trillion, up about 38 % from the ₦3.45 trillion posted in H1 2024, according to official data from National Bureau of Statistics (NBS).
The sharp rise in CIT suggests companies, especially local firms, are returning to profitability and paying more tax, perhaps helped by better revenue collection and economic reforms. Nonetheless, foreign-based firms’ tax contributions declined significantly in Q2.
The spike in tax receipts adds momentum to Nigeria’s shift away from oil, providing more fiscal space for government spending and reducing dependence on volatile oil revenues. A stronger non-oil tax base can help stabilise public finances and fund infrastructure or social programmes.
