Economy
Nigeria Generate N2.96trn from CIT, N2.28trn from VAT In Q3 2025
By Adedapo Adesanya
Nigeria generated N2.96 trillion from company income tax (CIT) in the third quarter of 2025, according to the latest data released by the National Bureau of Statistics (NBS).
The Q3 figure shows an increase of 6.55 per cent on a quarter-on-quarter basis from N2.78 trillion in Q2 2025.
The NBS data revealed that domestic CIT received was N1.21 trillion, while foreign CIT payment was N1.75 trillion in Q3 2025.
The rise came ahead of the January implementation of the tax reform, which analysts said could significantly increase tax revenue. The government hopes to leverage the reform to significantly increase the tax revenue.
On a quarter-on-quarter basis, arts, entertainment and recreation activities recorded the highest growth rate with 41.98 per cent; followed by accommodation and food service activities, and mining and quarrying with 37.11 per cent and 15.36 per cent, respectively.
On a year-on-year basis, CIT collections in Q3 2025 increased by 67.19 per cent from Q3 2024.
On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least with –83.88 per cent, followed by Financial and insurance activities (–79.72 per cent) and construction (–66.52 per cent).
In terms of Value Added Tax (VAT), collections also rose sharply, reaching N2.28 trillion in Q3 2025 from N1.77 trillion in the same quarter of the previous year, the NBS report showed.
VAT grew by 10.66 per cent quarterly from N2.06 trillion recorded in Q2 2025, driven largely by manufacturing, information and communication and mining/quarrying.
A breakdown of the N2.28 trillion generated in Q3 showed that local payments accounted for N1.12 trillion. Foreign VAT payments stood at N680.23 billion, while import VAT contributed N479.79 billion.
Sectoral analysis revealed that manufacturing recorded the largest share of VAT at 25.89 per cent in Q3 2025. Information and communication followed at 18.77 per cent, while mining and quarrying accounted for 14.85 per cent.
Together, the three sectors contributed more than half of the total VAT generated in the quarter.
In terms of growth performance, administrative and support service activities recorded the highest quarter-on-quarter increase at 89.28 per cent.
Arts, entertainment and recreation followed with 82.49 per cent growth, while human health and social work activities rose by 32.4 per cent.
However, not all sectors recorded gains. Real estate activities posted the sharpest decline, contracting by 51.33 per cent quarter on quarter.
Activities of households as employers and undifferentiated goods and services producing activities of households for own use fell by 36.22 per cent, while other service activities dropped by 20.3 per cent.
The report noted that activities of households as employers and undifferentiated goods and services producing activities of households for own use recorded the lowest VAT share at 0.003 per cent.
This was followed by activities of extraterritorial organisations and bodies, and water supply, sewerage and waste management, which accounted for 0.03 per cent each.
Overall, the year-on-year comparison shows a striking rebound in both corporate and consumption-based tax revenues, signalling stronger taxable activities and improving compliance across key sectors of the Nigerian economy.
By Adedapo Adesanya
The Minister of Finance, Mr Wale Edun, says Nigeria’s crude oil production has risen to 1.8 million barrels a day, contrasting with available production data.
Speaking in an interview with Reuters on Wednesday on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington D.C., the Minister said the current oil output would generate fiscal breathing space that will allow the government to support vulnerable households as it ploughs ahead with reforms.
Nigeria, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC), is Africa’s largest oil producer.
Mr Edun said rising crude production was positive for Nigeria’s revenue, foreign exchange and the country’s fiscal situation.
“It gives us that extra fiscal space within which to look at … helping the vulnerable households at this time,” he told the publication, noting that support would be targeted, adding “there is no thought of any return or retardation to broad untargeted subsidies.”
Mr Edun also said the Bola Tinubu-led administration was also committed to continuing its reform programme.
“Nigeria is in a position where the resilience that has been built in the economy is actually very obvious for all to see,” he said.
Despite the 1.8 million barrels per day figure claim, Business Post reports that production data for March 2026 from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria attained 1.546 million barrels per day, made up of 1.382 million barrels per day of crude, 42,809 barrels per day of blended condensate and 120,442 barrels per day of unblended condensate.
The average crude production represents 92 per cent of the OPEC quota, which is fixed at 1.5 million barrels per day.
By Adedapo Adesanya
The Securities and Exchange Commission Nigeria (SEC) has unveiled a new regulatory framework that would allow companies operating within free trade zones to raise capital from the Nigerian public, subject to strict eligibility and disclosure requirements.
The proposal, titled New Rules for Public Offering of Securities by a Free Trade Zone Entity, is anchored on provisions of the Investments and Securities Act (ISA) 2025 and is designed to integrate free trade zone enterprises into the domestic capital market while strengthening investor protection.
Under the proposed rules, only entities duly licensed by recognised free zone authorities, such as the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority, will be eligible to issue shares to the public.
The commission clarified that the rules will apply strictly to free trade zone entities (FTZEs), excluding companies operating outside designated zones, even if licensed by zone authorities. It also emphasised that no FTZE will be permitted to offer securities to the public without prior approval from the Commission.
To qualify, an FTZE must demonstrate a minimum of three years’ operating track record immediately preceding its application, with at least two years of independent business activity within a free trade zone. Additionally, such entities are required to have competent senior management and a minimum paid-up share capital of not less than N7.5 billion.
The SEC said FTZEs seeking to access the capital market must subject themselves to Nigeria’s tax laws and comply fully with ongoing disclosure and reporting obligations applicable to publicly listed companies.
The proposed framework also outlines extensive registration requirements. Issuers will be required to submit evidence of licensing by a free zone authority, constitutional documents, and verified details of shareholding structure and board composition.
A “No Objection” letter from the relevant free zone authority will also be mandatory, alongside a commitment to list the offered shares on a registered securities exchange.
The SEC noted that the rules are intended to provide clarity on eligibility criteria and operational conditions for FTZEs seeking to conduct public offerings, thereby deepening the capital market and aligning free zone operations with national financial system standards.
By Aduragbemi Omiyale
Shareholders of Guinness Nigeria Plc will share about N4.38 billion as an interim dividend for the first quarter of 2026, the board has disclosed.
This cash reward amounts to N2.00 per share, as the company has shares outstanding of 2,190,382,819 on the floor of the Nigerian Exchange (NGX) Limited.
The brewer stated that the interim dividend would be paid to investors whose names appear on the register of members as of the close of business on April 20, 2026.
The dividend payout is being proposed following the sustained profitability reflected in the unaudited financial results of the company in the first three months of this year and its “strong performance in FY 2025.”
It would be “paid from distributable profits in accordance with Sections 426–428 of the Companies and Allied Matters Act (CAMA) 2020.”
Analysis of the performance of the brewery giant between January and March 2026 showed that revenue grew by 4 per cent on a year-on-year basis to N122.77 billion from N118.34 billion in the same period of last year, while the gross profit contracted to N43.48 billion from N44.52 billion due to prevailing cost pressures within the operating environment.
The company’s operating profit also shrank to N17.18 billion from N18.00 billion in the first quarter of 2025 due to elevated marketing & distribution costs and administrative expenses.
However, the reduction in net finance costs to N1.43 billion from N7.72 billion in Q1 of 2025 helped the organisation to grow its post-tax profit to N10.39 billion in the period under review versus the N7.03 billion recorded in the corresponding period of last year.
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