Nigeria: Despite Covid-19, Nigeria’s Company Income Tax Increased in 3rd Quarter 2020 – NBS

Nigeria generated N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020

Although many Nigerian firms struggled to cope with the impact of COVID-19 on their operations, taxes paid to the government by companies increased in the third quarter of 2020.

Nigeria generated N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020, the National Bureau of Statistics (NBS) has said.

This, the agency noted, is an increase of 3.4 per cent from the N402.03 billion generated in the preceding quarter.

This takes the total CIT generated in the first three quarters of this year to N1.11 trillion.

In the whole of 2019, N1.63 trillion was generated as CIT; in 2018, it was N1.42 trillion; in 2017, it was N1.25 trillion.

The 2020 third quarter earnings, nonetheless, is a decrease of about N100 billion (20 per cent) when compared to the N520.89 billion generated in the third quarter of 2019.

The 2019 figure was higher than that of the third quarter of 2018, N362.7 billion, which was higher than the 2017 third quarter figure of N338.9 billion.

In the report published Thursday, NBS further gave a breakdown of the performance by different sectors and agencies on company income tax, with the ICT sector ranking top.

The report showed that professional services, which includes telecoms, generated the highest amount of CIT with N55.52 billion, closely followed by manufacturing, which generated N42.03 billion.

Meanwhile, the ICT sector contributed an increase and the highest amount to GDP in the second quarter amidst economic slowdown.

This, analysts believe, is as a result of high consumer demand for telecommunication services amidst nationwide lockdown due to COVID-19.

But as the movement restrictions were lifted, the sector’s contribution slowed in the third quarter after the nation’s economy plunged into its worst recession in about 40 years.

Other sectors

Banks and financial institutions generated N24.05 billion while commercial and trading paid N22 billion as company tax, the report showed.

Meanwhile, the mining sector generated, in tax, the least with N120 million, while textile and the garment industry paid the second least tax with N167 million.

Of the total amount generated in this year’s third quarter, N244.70 billion was generated as CIT locally while N70.34 billion was generated as foreign CIT payment.