CEM REPORT, FINANCE | Federal Government of Nigeria received a total of N1.75 trillion as Company Income Tax (CIT) for the third quarter of 2023, Nigeria Bureau of Statistics has reported in their CIT report released Friday
This is at aggregate growth rate of 14.27% on a quarter-on-quarter basis from N1.53 trillion in Q2 2023 and 53.68% year-on-year growth from 8.11 billion collected in Q3, 2022
While local collection dropped significantly, Foreign CIT payment increased more than hundred percent to boost the total CIT for Q3 2023. Out of the total, local payments received were N651.63 billion, a reduction of 36.42% from 1.025 trillion in Q2 2023 while Foreign CIT Payment contributed N1.10 trillion in Q3 2023. This is an increase of 116.95% compared to the 505.91 billion recorded in the preceding quarter.
Q3 2023 local CIT collection increased year-on-year from 483.17 billion collected in Q3 2022 by 34.87%, while foreign CIT increased by 235.62% from the 327.02 billion collected in Q3 2022.
On a quarter-on-quarter basis education recorded the highest growth rate with 59.60%, followed by public administration and defence, compulsory social security with 57.04%. On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –74.34%, followed by Water supply, sewerage, waste management and remediation activities with -73.25%.
In terms of sectoral contributions, the top three largest shares in Q3 2023 were information and communication with 26.18%; manufacturing with 23.90%; and mining and quarrying with 11.86%. Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by water supply, sewerage, waste management, and remediation activities with 0.04% and activities of extraterritorial organizations and bodies with 0.10%. However, on a year-on-year basis, CIT collections in Q3 2023 increased by 115.90% from Q3 2022.
