Nigeria experienced a remarkable surge in company income tax (CIT) revenue during the first half of 2025, with an impressive growth rate of 38%. This increase brought in N4.76 trillion in CIT, a significant jump from the N3.45 trillion recorded during the same period in 2024, according to the latest figures released by the National Bureau of Statistics (NBS). But here's where it gets interesting—while overall numbers are climbing, the story behind these figures reveals contrasting trends between domestic and foreign companies.
Most of this growth was fueled by Nigerian-based firms. Their tax remittances soared dramatically, even as contributions from foreign companies declined. Specifically, CIT collections rose from N1.98 trillion in the first quarter to N2.78 trillion in the second quarter, representing a robust 40% increase from quarter to quarter. On an annual basis, the second quarter’s figure was also up by 13%, compared to N2.47 trillion in the same period last year.
Digging deeper, the NBS data shows that domestic companies were responsible for the majority of this growth. Their tax payments surged from N646.51 billion in Q1 to a staggering N2.31 trillion in Q2—an increase of over 250% quarter-on-quarter. Compared to the same quarter in 2024, these payments grew by 71%, rising from N1.34 trillion. This indicates a significant boost in local corporate activity or profitability.
Meanwhile, foreign companies contributed less and less to Nigeria’s tax coffers. Their payments fell sharply, decreasing by 64.9% from N1.34 trillion in Q1 to just N469.36 billion in Q2—a drop of more than half in just a single quarter. Year-on-year, foreign corporate tax contributions plummeted by 58%, from N1.12 trillion in Q2 2024. This stark contrast raises questions about the economic environment for foreign firms operating in Nigeria.
In terms of sector contributions, the financial and insurance industry remained the largest contributor among domestic firms in Q2, remitting N1.02 trillion, which accounts for roughly 44% of all local corporate tax payments. The NBS attributed this sector’s strong performance to factors such as banking sector recapitalization, improved foreign exchange reserves, and increased interest income. Tax revenues from this sector skyrocketed by 166% year-on-year, from N383.57 billion in Q2 2024.
Following the financial sector, manufacturing registered a notable rise, contributing N360.20 billion—up 62% from N221.97 billion last year. The mining and quarrying industry also showed healthy growth, contributing N212.27 billion, reflecting a 24% increase compared to the previous year.
And this is the part most people might miss—while Nigeria’s overall tax revenue from companies is climbing, the uneven performance between domestic and foreign firms hints at underlying shifts in economic stability, policy impacts, or perhaps the international business climate. What do you think is driving these contrasting trends? Is Nigeria becoming more attractive for local entrepreneurs, or are foreign firms pulling back? Share your thoughts and join the conversation.
