By Bakare Ogunleye,Abuja
The financial sector has emerged as the top contributor to Nigeria’s corporate income tax revenue in the third quarter of 2024, generating a total of ₦570.91 billion, according to new data released by the National Bureau of Statistics (NBS).
This figure places the financial services industry—comprising banks, insurance firms, pension managers, and other financial institutions—at the forefront of corporate tax remittances, significantly outpacing all other sectors.
The NBS, in its Q3 2024 Company Income Tax (CIT) Report, noted that total CIT collections for the quarter stood at ₦1.75 trillion, a 35% increase compared to ₦1.3 trillion recorded in the previous quarter. The financial sector alone accounted for over 32% of this total, reflecting the sector’s sustained profitability and robust compliance with tax regulations.
Analysts attribute the sector’s strong tax performance to higher interest income, improved asset quality, and increased profitability across commercial and merchant banks, following regulatory reforms and monetary tightening by the Central Bank of Nigeria (CBN).
Other top-performing sectors in Q3 include Information and Communication, which contributed ₦296.52 billion, and Manufacturing, with ₦249.41 billion in CIT. The Mining and Quarrying sector also posted notable tax figures at ₦188.63 billion, amid rising global commodity prices.
Meanwhile, sectors such as Arts, Entertainment & Recreation and Water Supply, Sewerage & Waste Management contributed the least, remitting ₦424.38 million and ₦1.45 billion, respectively.
The report also highlighted that local CIT payments stood at ₦1.4 trillion, while foreign CIT payments totaled ₦350 billion, underscoring the growing role of cross-border business activities and foreign investments in Nigeria’s tax base.
Reacting to the data, tax experts and financial analysts commended the sector’s leadership, describing it as a reflection of sound corporate governance, steady income streams, and strengthened oversight by tax authorities.
They, however, called for improved sector-wide enforcement to boost compliance in underperforming industries, urging the Federal Inland Revenue Service (FIRS) to expand its digital tax collection infrastructure and close existing revenue gaps.
With Nigeria seeking to expand non-oil revenue amid fiscal pressures, the financial sector’s strong showing in Q3 2024 provides a critical buffer for government spending and economic planning going into 2025.
