Economy
Revenue from Company Income Tax in Three Months Rises 20.2%
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).
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
