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 Adedapo Adesanya
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
