Nigeria’s Company Income Tax revenue climbed significantly in the second quarter of 2025, reaching N2.78 trillion and signalling stronger corporate activity across several key sectors.
The National Bureau of Statistics confirmed the new figures in its latest sectoral performance report, which shows a 40 percent rise compared to the N1.98 trillion generated in the opening quarter of the year.
Domestic companies were responsible for the majority of the collections. According to the NBS, firms operating locally contributed N2.31 trillion, while foreign-based companies remitted N469.36 billion within the same period. Analysts believe the growth reflects improved business compliance and better earnings among major corporate players.
The News Chronicle learned that authorities see this revenue jump as evidence that recent tax administration reforms are yielding results, particularly in sectors that recorded stronger profitability and expanded capital flows during the period.
Breakdown of sectoral performance shows the financial services and insurance industry leading by a wide margin. It recorded a remarkable quarterly growth of more than seven hundred percent, driven by impressive half-year results from banks, leading fintech companies and insurance firms.
Wholesale and retail trade, as well as motor vehicle repair activities, also posted notable expansion of more than five hundred percent. Activities of households as employers rose sharply too, though their overall impact on national tax revenue remained minimal.
Several sectors, however, saw major declines in remittances. Extraterritorial organisations recorded the steepest drop, followed by education and public administration. The lower performance of these sectors, especially those dependent on government funding, points to ongoing structural and fiscal pressures.
Financial and insurance activities dominated overall contributions with more than 44 percent of total CIT revenue. Manufacturing contributed over 15 percent, buoyed by rising production and modest supply chain improvements. Mining and quarrying followed, supported by stronger commodity prices.
Only a small fraction came from household employer activities and remediation services, which recorded some of the lowest contributions nationwide.
Despite economic uncertainties, year-on-year CIT revenue still rose by more than 12 percent when compared with the second quarter of 2024, reinforcing gradual but steady improvements in government revenue mobilisation.
