- The federal government of Nigeria’s non-oil revenue boost was a success in 2021 as companies’ income tax payments increased
- Data from the National Bureau of Statistics (NBS) shows over N1 trillion was made to the account of the Federal Inland Revenue Service
- Companies providing professional services generated the highest amount of company income tax
The National Bureau of Statistics (NBS) said that revenue from Company Income Tax (CIT) rose by 19.8 percent year-on-year (YoY) to N1.69 trillion in 2021 from N1.41 trillion collected in 2020.
According to the NBS data, the Federal Government raked in N392.77bn during the first quarter of 2021, N472.07bn in the second quarter.
The Punch reports that N472.52bn was generated in the third quarter, and N347.81bn in the fourth quarter of 2021.
For the full 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).
Sectorial breakdown of how much was generated
According to NBS breakdown as reported by Vanguard newspaper, in the first quarter of 2021, breweries, bottling and beverages generated the highest amount of CIT with N23.26bn while the textile and garment industry generated the least with N13.49m.
For the second quarter, professional services generated the highest amount of CIT with N130.09 billion. Companies in the textile and garment industry again generated the least amount of N27.23m.
Manufacturing companies lead the table in the third quarter with N64.48 billion tax paid to the federal government account.
This again changed in the fourth quarter of 2021 as the information and communication sector generated the highest amount of N51.05bn, manufacturing came second with N45.09 billion.
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Legit.ng had earlier revealed how much 13 Nigerian companies listed on the Nigerian Exchange Limited (NGX) remitted to the Nigerian government.
The Federal Inland Revenue Service (FIRS) is one of the collecting agencies and recently declared it exceeded its target in the first eight months of 2021.
Companies operating in Nigeria are meant to pay income tax, Education tax, National Information Technology Development Agency (NITDA) tax, and Nigeria Police Trust Fund levy.