Economy
Companies Pay N1.75trn Income Tax in Q3 as Nigeria Rakes N948bn VAT
By Adedapo Adesanya
The latest set of data released by the National Bureau of Statistics (NBS) showed that Nigeria recorded a rise in the Value Added Tax (VAT) and the Company Income Tax (CIT) paid to the nation’s purse in the third quarter of the year.
VAT, which is a levy paid on goods and services produced within or imported into the country, saw a 21.3 per cent rise in value to N948.07 billion from N781.35 billion in the preceding quarter, Q2 of 2023. Comparatively, on a year-on-year basis, VAT collections in Q3 2023 increased by 51.6 per cent from Q3 2022.
A breakdown showed that local payments recorded were N522.08 billion and foreign VAT payments were N204.58 billion, while import VAT contributed N221.41 billion in Q3 2023.
On a quarter-on-quarter basis, agriculture, forestry, and fishing recorded the highest growth rate with 91.9 per cent, followed by the activities of extraterritorial organizations and bodies with 80.25 per cent.
On the other hand, real estate had the lowest growth rate at –37.7 per cent, followed by construction at – 9.54 per cent.
In terms of sectoral contributions, the top three largest shares in Q3 2023 were manufacturing with 26.5 per cent; information and communication with 19.0 per cent; and financial & insurance activities with 12.3 per cent.
The NBS noted that nevertheless, activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.02 per cent, followed by water supply, sewerage, waste management, and remediation activities with 0.06 per cent; and activities of extraterritorial organizations and bodies with 0.10 per cent.
As for the CIT for Q3 2023, which is the tax on the profits of both local and foreign firms operating in the country, the bureau reported a 14.3 per cent growth to N1.75 trillion versus the N1.53 trillion recorded in the preceding quarter.
On a year-on-year basis, CIT collections in the quarter increased by 115.9 per cent from the same period last year.
In Nigeria, the tax is currently charged at the rate of 30 per cent for companies having more than N100 million in turnover, and 20 per cent for companies with a turnover ranging between N25 million and N100 million.
As a result, local payments received were N651.63 billion, while Foreign CIT payments contributed N1.10 trillion in Q3 2023.
On a quarter-on-quarter basis, education recorded the highest growth rate with 59.6 per cent, followed by public administration and defence, and compulsory social security with 57.0 per cent.
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –74.3 per cent, followed by Water supply, sewerage, waste management, and remediation activities with -73.3 per cent.
In terms of sectoral contributions, the top three largest shares in the quarter were information and communication with 26.2 per cent; manufacturing followed with 23.9 per cent; and mining and quarrying with 11.86 per cent.
The activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.00 per cent, followed by water supply, sewerage, waste management, and remediation activities with 0.04 per cent, and activities of extraterritorial organizations and bodies with 0.10 per cent.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to green territory on Tuesday after it chalked up 0.09 per cent on the back of renewed buying pressure.
The market regained strength yesterday despite profit-taking in the banking space, which caused its index to close lower by 0.69 per cent.
Business Post reports that insurance counter was up by 2.80 per cent, the energy sector appreciated by 2.40 per cent, the commodity segment grew by 1.22 per cent, and the consumer goods industry improved by 0.03 per cent, while the industrial goods counter closed flat.
At the close of transactions, the All-Share Index (ASI) went up by 144.32 points to 166,256.82 points from 166,112.50 points and the market capitalisation gained N93 billion to finish at N106.436 trillion compared with the N106.343 trillion it settled on Monday.
During the session, investors transacted 795.5 million equities valued at N20.0 billion in 45,410 deals versus the 629.6 million equities worth N14.8 billion executed in 57,858 deals a day earlier, indicating a rise in the trading volume and value by 26.35 per cent and 35.14 per cent apiece and a decline in the number of deals by 21.52 per cent.
Tantalizers was the busiest stock yesterday with a turnover of 87.0 million units valued at N300.9 million, Secure Electronic Technology traded 74.2 million units worth N87.6 million, a new member of the NGX, Zichis Agro Allied Industries, transacted 69.6 million units for N138.5 million, Zenith Bank sold 49.1 million units valued at N3.5 billion, and GTCO exchanged 39.1 million units worth N3.8 billion.
On Tuesday, the market breadth index was positive after Customs Street ended with 39 appreciating shares and 25 depreciating shares, representing a bullish investor sentiment.
Deap Capital, NPF Microfinance Bank, and Red Star Express gained 10.00 per cent each to sell for N5.39, N4.73, and N15.95 apiece, as NCR Nigeria soared by 9.97 per cent to N155.50, and Morison Industries also increased by 9.97 per cent to N6.84.
Conversely, Aluminium Extrusion lost 9.95 per cent to settle at N17.20, Jaiz Bank declined by 9.88 per cent to N7.21, FTN Cocoa shrank by 8.44 per cent to N7.05, UPDC decreased by 8.06 per cent to N5.70, and Caverton slumped by 5.59 per cent to N7.60.
By Adedapo Adesanya
Oil prices rose on Tuesday on the temporary suspension of output at Kazakhstan’s oil fields and expectations of firmer global economic growth that could drive fuel demand.
Brent futures chalked up 98 cents or 1.53 per cent to trade at $64.92 a barrel and the US West Texas Intermediate (WTI) crude contract for February, which expired on Tuesday, gained 90 cents or 1.51 per cent to close at $60.34 per barrel.
Kazakh oil producer Tengizchevroil said on Monday it had temporarily halted production at the Tengiz and Korolev oilfields after an issue affected power distribution systems.
The Chevron-operated joint venture operating the supergiant 700,000 barrels per day Tengiz field onshore Kazakhstan stated that it had suspended production as a “precautionary measure” after a fire broke out at the field’s power distribution systems.
Tengiz could be halted for another seven to 10 days, cutting crude exports via the Caspian Pipeline Consortium (CPC).
Market analysts noted that Tengiz is amongst the largest fields in the world and so the outage is certainly disruptive for crude flows.
The oil market also drew support from better-than-expected fourth-quarter Chinese gross domestic product data released on Monday as data showed that the economy of the world’s largest oil producer grew by 5 per cent last year and the country’s refinery throughput in 2025 climbed 4.1 per cent on a year-over-year basis, data showed on Monday. China’s crude oil output also grew 1.5 per cent.
Prices also gained on an upward revision of this year’s global economic growth estimate by the International Monetary Fund (IMF).
The IMF in its World Economic Outlook update forecast global GDP growth at 3.3 per cent in 2026, up 0.2 percentage point from its last estimate in October. That’s even with 3.3 per cent growth in 2025, which will also beat the October estimate by 0.1 percentage point.
The lender said that globally, inflation was forecast to continue to decline, from 4.1 per cent in 2025 to 3.8 per cent in 2026 and 3.4 per cent in 2027.
Investors continued to monitor US President Donald Trump’s tariff threats against European states that oppose his push to acquire Greenland.
The American president said he would impose additional 10 per cent levies from February 1 on goods imported from EU members Denmark, Finland, France, Germany, Sweden and the Netherlands, as well as Britain and Norway, rising to 25 per cent on June 1 if no deal on Greenland was reached.
President Trump’s tariff threats have a negative bearing on crude prices as the levies could lead to lower global economic growth and therefore reduce oil demand growth.
By Adedapo Adesanya
The chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, has identified the recovery of shut-in oil and gas volumes as a central strategy for optimising Nigeria’s upstream production and stabilising revenue.
She said the oil and gas sector remains critical to Nigeria’s economic stability, stressing that effective regulation must be anchored on a strong, efficiently run upstream industry.
According to Mrs Eyesan, the commission’s agenda for the sector under her leadership, is built on three core pillars, with production and revenue optimisation taking priority.
“Our agenda rests on optimising production and revenue by recovering shut-in volumes,” she said. Shut-in volumes refer to the amount of oil or gas that is currently capable of being produced but is not being extracted because the wells have been deliberately closed off.
The NUPRC head explained that unlocking idle production requires closer collaboration between regulators and operators, supported by transparent and accountable industry practices.
Mrs Eyesan added that regulatory efficiency is another key enabler of production optimisation, noting that speed and predictability in approvals are essential to sustaining upstream operations.
“We are focused on ensuring regulatory speed and predictability through clear rules and digital processes,” she said.
The NUPRC chief further said that optimising output must go hand-in-hand with safe and sustainable operations, including effective governance of assets and improved host community outcomes.
“Strengthening safe, governed and sustainable operations, including host community outcomes and decarbonisation, is part of our broader objective,” Mrs Eyesan said.
She noted that a stable regulatory environment, combined with production recovery efforts, would support industry confidence and improve Nigeria’s ability to maximise value from its hydrocarbon resources.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn