Fresh figures from the National Bureau of Statistics (NBS) show that Nigeria’s company income tax (CIT) revenue grew significantly in the first half of 2025, reaching N4.76 trillion, a 38 per cent increase compared with the N3.45 trillion collected during the same period of 2024. The upturn was driven predominantly by domestic corporations, which recorded substantial improvements in tax remittances even as foreign firms’ contributions fell sharply.
The data indicates a notable acceleration between the first and second quarters of the year. CIT collections climbed from N1.98 trillion in Q1 to N2.78 trillion in Q2, representing a 40 per cent quarter-on-quarter rise. Year-on-year, the Q2 figure also stood 13 per cent higher than the N2.47 trillion recorded in Q2 2024.
A closer look at the breakdown highlights the dominant role of local firms. Domestic company income tax surged from N646.51 billion in Q1 to N2.31 trillion in Q2—an exceptional 250 per cent jump within three months. Compared with Q2 2024, domestic payments were also stronger, rising 71 per cent from N1.34 trillion.
Foreign companies showed a contrasting trend. Their remittances fell 64.9 per cent quarter-on-quarter, dropping from N1.34 trillion in Q1 to N469.36 billion in Q2. On a yearly basis, the decline remained steep: tax contributions from foreign firms were down 58 per cent from N1.12 trillion a year earlier. The figures suggest that external business activity weakened or that foreign firms are taking a more cautious posture amid shifting economic conditions.
Sectoral performance further underscores the picture of domestic-driven growth. The financial and insurance sector remained the leading source of local CIT in Q2, remitting N1.02 trillion, which accounted for about 44 per cent of all domestic collections. According to the NBS, the sector’s strong showing benefited from ongoing banking recapitalisation efforts, improved foreign-exchange conditions, and higher interest income. Year-on-year, the sector’s tax payments rose 166 per cent from N383.57 billion in Q2 2024.
The manufacturing sector followed with N360.20 billion, marking a 62 per cent increase from N221.97 billion in the same quarter last year. Mining and quarrying contributed N212.27 billion, reflecting 24 per cent growth on a yearly basis.
Overall, the mid-year numbers point to intensified activity among domestic firms, particularly in finance, even as foreign corporate participation appears to have moderated. The data will likely shape fiscal expectations for the remainder of the year as policymakers look to sustain revenue momentum while addressing the imbalances between local and foreign tax contributions.