Companies Operating in Nigeria Pays N1.69 Trillion in Income Tax in 2021 – NBS

Companies operating in Nigeria paid a combined N1.69 trillion in the 2021 financial year, the National Bureau of Statistics, NBS latest report has revealed.

Investors King gathered that in 2020, company income tax amounted to N1.41 trillion. With this, there is a 19.56 percent increase in the tax obtained when compared with the 2021 record.

The Company Income Tax statistics were provided by the Federal Inland Revenue Service, FIRS who is responsible for collecting and accounting for federal government revenues, the NBS hinted.

The analysis of the NBS data revealed that during the first quarter of 2021, N392.77 billion was received, N472.07bn in the second quarter, N472.52bn in the third quarter, and N347.81bn in the fourth quarter of 2021.

It further stated that in the first quarter, breweries, bottling and beverages generated the highest amount as their company income tax summed up to N23.26bn. 

Next was professional service industries comprising telecoms which generated N18.17bn; state ministries and parastatals generated N17.35bn, while textile and garment industry generated the least, and closely followed by mining and automobiles/assemblies with N13.49m, N34.40m and N73.57m generated respectively.

Moving to the second quarter of 2021, professional service companies generated the highest amount of income tax with N130.09bn, followed by ‘Other Manufacturing’ which generated N87.27bn; banks & financial institutions generated N60.01bn while textile and garment industry generated the least and closely followed by automobiles and assemblies and pioneering with N27.23m, N62.15m and N64.30m generated respectively.

In Q3, manufacturing activity had the highest –N64.48bn; Information and Communication activity next with N58.15bn; and mining & quarrying activity– N36.01bn as the top three largest share of revenue at 22.08 per cent, 19.91 per cent and 12.33 per cent respectively.

Record for the fourth quarter stated that “in terms of sectoral contributions, the top three largest shares were information and communication (N51.05bn) with 19.72 per cent; manufacturing (N45.09bn) with 17.42 per cent; and financial and insurance activities (N31.06bn) with 12.00 per cent.”

“For the year, local companies paid N1.12tn (66.22 per cent) as tax, foreign companies paid N505.68bn (30.01 per cent) as tax, while other tax payments amounted to N63.57bn (3.77 per cent).”