Economy

Revenue from Company Income Tax in Three Months Rises 20.2%

Published

4 years ago

11/08/2021

By Ashemiriogwa Emmanuel

The revenue generated by Nigeria as Company Income Tax (CIT) across sectors in the second quarter of 2021 grew by 20.2 per cent quarter-on-quarter, the National Bureau of Statistics (NBS) has said.

Also, the stats office disclosed that the income from the source also increased by 17.4 per cent year-on-year.

It was stated that in Q2 2021, a total of N472.1 billion was realised from all the 28 sectors tracked by the agency compared to N392.7 billion generated in the first quarter of the year.

In the report, it was disclosed that N412.7 billion out of the total amount generated was realized from domestic companies, while N51.6 billion was generated as foreign CIT payment while the remaining N2.72 billion was yielded as CIT from other payments.

In a breakdown analysis, the highest amount of CIT collection was generated from the professional services and telecoms sector, as it raked in N130.1 billion, a 616 per cent growth rate from the N18.2 billion generated in the first quarter of 2021.

From the banking and financial institutions, CIT generation grew by 548.3 per cent to N60 billion from N9.3 billion yielded in Q1 while it rose 22.6 per cent compared to N49 billion generated in the same period last year.

In the building and construction sector, the government was able to generate a total of N5.1 billion from CIT, indicating a 70.5 per cent increase from the N2.9 billion realized in the previous quarter. However, on a year-on-year, CIT dropped by 16.4 per cent compared to N6.1 billion.

The taxes generated from the agricultural/plantations and gas sector increased by 223.5 per cent and 939.8 per cent to N2.99 billion (from 924.4 million) and N8.4 billion (from N806 billion) respectively, on a quarter-on-quarter basis.

In the agricultural/plantation sector, CIT then grew 152.1 per cent compared to N1.2 billion on a year-on-year basis while in the gas sector, it surged by 1,178.4 per cent from N655.5 million.

According to the data, the N13.5 billion generated from commercial and trading activities in the preceding quarter increased by 75.2 per cent to N23.7 billion which relatively shows a 61.5 per cent increase compared to N14.6 billion generated from the sector in Q2 2020.

However, there was a 22.8 per cent decline at the CIT renumerated by federal ministries and parastatals in the comparative period as a total of N4.9 billion was published versus N6.4 billion while it rose year-on-year by 54.6 per cent against N3.2 billion in Q2 2020.

In the same pattern, there was a 34.1 per cent drop to N11.4 billion in the total CIT generated from the state ministries & parastatals sector as against the N17.4 billion yielded in the first three months of 2021. But, this was a different outcome compared to the same period last year, as it grew by 10.7 per cent to N10.3 billion.

Similarly, CTI generated from the oil-producing sector depleted by 46.3 per cent to N8.2 billion from the N15.2 billion obtained in the first quarter of 2021. This also reflects a 3.76 per cent decrease from the N8.6 billion acquired in the second quarter of 2020.

Data on the report showed that the textile and garment sector generated the least which is closely followed by automobiles and assemblies and pioneering with N27.23 million, N62.15 million, and N64.30 million generated for respectively compared to (Q1’21 – 13.5 million, Q2’20 – 32.9 million), (Q1’21 – N73.6 million, Q2’20 – N81.6 million), and (Q1’21 – N204.1 million, Q2’20 – N923.7 million).

Economy

FAAC Shares N1.678trn to FG, States, Councils From February 2025 Revenue

Published

4 hours ago

25/03/2025

Adedapo Adesanya

By Adedapo Adesanya

The Federation Account Allocation Committee (FAAC) shared a total of N1.678 trillion in March 2025 to the three tiers of government as federation allocation from the revenue generated by the nation in February 2025.

A statement from the Federation Accounts Allocation Committee (FAAC) after its meeting for this month, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed that the amount generated stood at N2.344 trillion, comprising Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), an argumentation of N178 billion and revenues from Solid Minerals.

It was revealed that the federal government was given N569.656 billion, the states received N562.195 billion, the local government councils got N410.559 billion, while the oil-producing states shared N136.042 billion as 13 per cent derivation of mineral revenue.

The statement further disclosed that VAT for the month was N609.430 billion versus N771.886 billion in the preceding month, with the federal government receiving N91.415 billion, the states getting N304.715 billion, and the councils sharing N213.301 billion.

FAAC presented N1.653 trillion as gross statutory revenue for last month, lower than the N1.848 trillion recorded a month earlier, with N61.449 billion used for the cost of collection and N736.249 billion for transfers, intervention and refunds.

When the balance of N827.633 billion was shared, the federal government got N366.262 billion, the states received N185.773 billion, and the councils got N143.223 billion, while the oil-producing states shared N132.374 billion as 13 per cent derivation revenue.

Also, the sum of N35.171 billion from EMTL was distributed, with the federal government receiving N5.276 billion, the states sharing N17.585 billion, and the local government councils getting N12.310 billion, while N1.465 billion was for the cost of collection.

Further, N28.218 billion was generated from solid minerals and the central government got N12.933 billion, the states received N6.560 billion, the LGCs got N5.057 billion, and the oil-producing states shared N3.668 billion.

In addition, from the N178 billion augmentation, the national government received N93.770 billion, the states got N47.562 billion, and the local councils received N36.668 billion.

It was observed that revenues from VAT, Petroleum Profit Tax, Companies Income Tax, excise duty, import duty and CET Levies declined in February, while earnings from EMTL and oil and gas royalty increased significantly.

Economy

1.7 million Barrels of Dangote Refinery Jet Fuel Arrive US Ports

Published

5 hours ago

25/03/2025

Adedapo Adesanya

By Adedapo Adesanya

The 1.7 million barrels of jet fuel exported from the Dangote refinery in Lagos, Nigeria, have arrived at US ports, according to data from ship-tracking service, Kpler.

It was reported that another vessel, Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29 with a load of about 348,000 barrels of jet fuel, the data showed.

US jet fuel imports are set to hit a two-year high in March after the refinery pushed barrels to North America and Europe.

Total US jet fuel imports so far in March stood at around 226,000 barrels per day, the most since February 2023, the data showed.

The development comes amid controversies surrounding the sale and availability of crude oil to the refinery and Premium Motor Spirit or petrol supply to the Nigerian market.

Nigeria’s decision to cancel the Naira-for-crude deal with the refinery has since created panic in the hearts of marketers and consumers alike.

The 650,000 barrels per day refinery has also suspended selling petrol in Naira to marketers.

It lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US Dollars.

“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the firm announced.

The announcement has since triggered a rise in the cost of loading petrol at private depots in Lagos to about N900 per litre from below N850 per litre before.

The Dangote refinery started production last January after years of construction delays and ramped up to about 85 per cent of capacity in early February, allowing it to sell more fuel to international markets.

Economy

Four Securities Weaken NASD Index by 0.57%

Published

8 hours ago

25/03/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange crumbled by 0.57 per cent on Monday, March 24 after four stocks on the trading platform closed lower.

Okitipupa Plc gave up N22.66 during the session to settle at N285.00 per unit compared with the N307.66 per unit it was sold last Friday, FrieslandCampina Wamco Nigeria Plc lost 17 Kobo to trade at N37.00 per share versus N37.17 per share, Food Concepts Plc depreciated by 14 Kobo to close at N1.35 per unit compared with the preceding session’s N1.49 per unit, and Industrial and General Insurance (IGI) Plc declined by 2 Kobo to finish at 35 Kobo per share, in contrast to the preceding trading day’s 37 Kobo per share.

Conversely, Central Securities Clearing System (CSCS) Plc improved its value by 69 Kobo to sell at N23.53 per unit versus N22.84 per unit and UBN Property Plc gained 20 Kobo to quote at N2.20 per share, in contrast to the previous value of N2.00 per share.

When the bourse ended for the session, the NASD Unlisted Security Index (NSI) went down by 19.09 points to 3,339.52 points from the previous trading day’s 3,358.61 points, and the market capitalisation shrank by N11.03 billion to N1.928 trillion from N1.939 trillion.

The volume of securities traded at the NASD yesterday rose by 216.1 per cent to 961,456 units from the 304,188 units recorded last Friday, and the value of securities went up by 116.3 per cent to N22.1 million from N10.2 million, while the number of deals depreciated by 31.3 per cent to 22 deals from 32 deals.

Impresit Bakolori Plc remained the most active stock by value (year-to-date) with 533.9 million units worth N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 13.3 million units valued at N513.7 million, and Afriland Properties Plc with 17.6 million units sold for N360.1 million.

Impresit Bakolori Plc was also the most active stock by volume (year-to-date) with 533.9 million units valued at N520.9 million, trailed by IGI Plc with 70.0 million units sold for N23.8 million, and Geo-Fluids Plc with 44.1 million units worth N88.9 million.