FG Income Tax Collection Hits N2.47tn, Up 150% in Q2 2024

Arthur Eriye

Data published by the National Bureau of Statistics (NBS) has revealed that the federal government’s Company Income Tax (CIT) collection in the second quarter of 2024 increased by 150.83 per cent to N2.47 trillion.

In the first quarter of the year, company income tax collection stood at N984.61 billion. 

According to the NBS, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50 per cent, followed by financial and insurance activities at 429.76 per cent, and manufacturing at 414.15 per cent.

On the other hand, the lowest growth rate was observed in household activities as employers and undifferentiated goods- and services-producing activities for own use, which recorded a decline of –30.22 per cent, followed by extraterritorial organizations and bodies with a decrease of –15.67 per cent.

In Q2 2024, the top three sectors contributing the largest shares were financial and insurance activities at 15.53 per cent, manufacturing at 8.99 per cent, and information and communication at 7.84 per cent.

Contrarily, household activities as employers and undifferentiated goods- and services-producing activities for own use had the smallest share at 0.00 per cent, followed by water supply, sewerage, waste management, and remediation activities at 0.02 per cent, and extraterritorial organizations and bodies at 0.03 per cent.

On a year-on-year basis, CIT collections in Q2 2024 rose by 59.52 per cent compared to the N1.55 trillion recorded in Q2 2023.

In the first quarter of the year, CIT collection declined by 12.87 per cent when compared to the fourth quarter of 2023.

Analysts have attributed the decline to the nation’s ongoing macroeconomic challenges, including high inflation, exchange rate instability, rising input costs, and other related factors.

However, the spike in CIT collection in Q2 was mainly propelled by rise in foreign Company Income Tax payment which increased by 87.24 per cent to N1.11 trillion when compared to Q1, 2024 and more than doubled when compared to the corresponding period of last year.

However, it has been observed that there has been a consistent rise in CIT collection in the second quarter of the year dating back to Q2, 2021.