How Companies Paid N714.4bn Income Tax to FG in Q2 2022

By Aduragbemi Omiyale

Some companies operating in Nigeria paid the sum of N714.4 billion as income tax to the federal government in the second quarter of 2022.

Those in the manufacturing, information and communication as well as financial and insurance sectors were the major contributors to this source of revenue for the government.

According to the National Bureau of Statistics (NBS), the three industries accounted for 27.55 per cent, 24.56 per cent and 14.98 per cent respectively of the total collections in the period under consideration.

It was disclosed that the N714.4 billion collected as Company Income Tax (CIT) between April and June 2022 was 29.53 per cent higher than the N551.5 billion collected between January and March 2022.

A further breakdown showed that domestic organisations made the highest remittance to the government when compared with foreign firms. While the local payments received stood at N634.01 billion, offshore payments accounted for N80.39 billion.

On a quarter-on-quarter basis, the activities of accommodation/food services recorded the highest growth rate of 481.93 per cent, followed by information/communication with 430.67 per cent, and transportation/storage with 339.08 per cent.

On the other hand, activities of extraterritorial organizations/bodies had the lowest growth rate of 42.59 per cent, followed by activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80 per cent.