Nigeria’s corporate tax revenue weakened significantly in the final quarter of 2025, with collections dropping to N1.49 trillion from N2.96 trillion recorded in the previous quarter, new figures from the National Bureau of Statistics show.
The nearly 50% decrease indicates a slowdown in business tax revenues over time, suggesting a short-term strain on income and remittances.
Although the quarterly decline was significant, the data still show a slight year-on-year rise, pointing to underlying resilience in the corporate tax base.
Examining the statistics more closely reveals that domestic companies provided N819.83 billion, while foreign businesses supplied N668.21 billion.
With education, real estate, and extraterritorial activities posting gains while sectors like hospitality, mining, and domestic labor saw steep drops, sectoral performance stayed inconsistent.
The News Chronicle gathered that seasonal changes and shifting economic conditions could be related to the decline in collections, as companies navigate cost pressures and evolving financial regulations.
According to analysts, the turbulence highlights the delicate equilibrium between tax income and economic activity.
The main contributors to total tax income continued to be financial services, manufacturing, and mining, therefore affirming their major importance in Nigeria’s economy.
The downturn follows reform efforts by the federal government, including new tax systems implemented under the leadership of Bola Tinubu, aimed at increasing compliance and broadening the revenue base.
