Nigeria generated ₦4.76 trillion from company income tax (CIT), in the first half of 2025, according to newly released data from the National Bureau of Statistics (NBS). This marks a significant rise from the ₦3.45 trillion recorded in the same period of 2024 — representing a 38% year-on-year increase and signalling stronger corporate profitability across key domestic sectors.
CIT, a central component of government revenue, is levied on the profits of both local and foreign companies operating in Nigeria. The latest figures show not only a broad recovery in corporate earnings but also a shifting balance in tax contributions between domestic and foreign firms.
Domestic Companies Drive Revenue Surge
A major highlight of the NBS report is the dominant role played by local companies, whose CIT contributions surged dramatically in the second quarter.
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CIT from domestic firms rose from ₦646.51 billion in Q1 to ₦2.31 trillion in Q2 2025 — a staggering quarter-on-quarter increase of over 250%.
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Year-on-year, this represents a 71% jump, up from ₦1.34 trillion in Q2 2024.
This performance underscores the growing resilience and expanding profitability of Nigerian companies despite persistent macroeconomic challenges such as high inflation, currency volatility, and elevated operating costs.
Foreign Firms Record Sharp Decline
In contrast, foreign companies saw their tax contributions fall steeply.
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Their CIT payments dropped from ₦1.34 trillion in Q1 to ₦469.36 billion in Q2 2025 — a 64.9% quarter-on-quarter decline.
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On a year-on-year basis, their contributions decreased by 58%, down from ₦1.12 trillion in Q2 2024.
The disparity between domestic and foreign contributions may reflect profitability pressures on multinational entities, the impact of Nigeria’s FX reforms, and potential strategic adjustments by global firms operating in the country.
Quarterly Growth: Momentum Builds
Overall CIT earnings climbed from:
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₦1.98 trillion in Q1 2025
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To ₦2.78 trillion in Q2 2025
Although this Q2 figure represents a 13% increase from the ₦2.47 trillion recorded in Q2 2024, the surge was overwhelmingly powered by domestic entities.
Financial Sector Emerges Top Contributor
The financial and insurance sector maintained a commanding lead as the highest CIT contributor in Q2 2025.
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The sector paid ₦1.02 trillion, accounting for 44% of all local CIT in the quarter.
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This figure represents a 166% increase over the ₦383.57 billion paid in Q2 2024.
Analysts attribute this impressive performance to:
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Bank recapitalisation programmes
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FX gains from revaluation
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Higher interest income amid tight monetary conditions
This underscores the banking sector’s central role in stabilising government revenue and powering economic activity.
Manufacturing and Mining Follow Strongly
Beyond financial services, several non-oil sectors posted strong contributions:
Manufacturing Sector
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Paid ₦360.20 billion in Q2 2025
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Up 62% from ₦221.97 billion in Q2 2024
This indicates improving performance among manufacturers, despite persistent challenges such as high energy costs and import-dependent inputs.
Mining and Quarrying
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Remitted ₦212.27 billion
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Posting a 24% year-on-year increase
The sector continues to benefit from renewed interest in solid minerals exploration and government reforms aimed at reducing reliance on oil revenue.
A Turning Point for Government Revenue?
The NBS report suggests a potential turning point in Nigeria’s fiscal landscape:
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Domestic firms are becoming a more dominant and reliable tax base
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Non-oil sectors are steadily expanding their contributions
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The government may gain more fiscal room if the upward trajectory in CIT is sustained through the second half of the year
However, the sharp fall in foreign firms’ tax contributions highlights vulnerabilities that could impact long-term revenue stability, especially if international investment flows remain subdued.
Outlook for the Rest of 2025
Key indicators to watch include:
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Sustained profitability in domestic sectors
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Stability in FX conditions, which heavily influence multinational earnings
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The effect of ongoing economic reforms, particularly in fiscal policy, banking, and industry
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Whether the CIT momentum can deliver a record full-year performance
As Nigeria seeks to diversify revenue and strengthen economic resilience, the strong CIT showing in H1 2025 offers both optimism and a reminder of the structural reforms still needed to balance growth across all sectors.
