Nigeria: Company Income tax drops 35.4% to N1.13trn, VAT up 26.61% in Q4 2023

Nigeria’s aggregate Company Income Tax (CIT) for Q4 2023 dropped by 35.40 per cent to N1.13 trillion from N1.75 trillion recorded in Q3 2023, the National Bureau of Statistics (NBS) said.

This is as the aggregate Value Added Tax (VAT) rose 26.61 per cent to N1.20 trillion from N948.07 billion in Q3 2023.

The figure is contained in the NBS Company Income Tax(CIT) Q4 2023 Report released in Abuja.

The report said local payments received were N533.93 billion, while foreign CIT payment contributed N596.10 billion in Q4 2023.

It said on a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate at 79.65 per cent , followed by construction with 57.86 per cent .

“On the other hand, information and communication activities at –69.44 had the lowest growth rate.

“This was followed by public administration and defence, compulsory social security at –23.75 per cent. ”

In terms of sectoral contributions, the report showed that the top three largest shares in Q4 2023 were manufacturing at 12.84 per cent.

“This was followed by financial and insurance activities at 6.25 per cent, and mining and quarrying at 5.90 per cent.”

It said on the other hand, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share at 0.00 per cent.

“This was followed by water supply, sewerage, waste management, and remediation activities at 0.02 per cent and activities of extraterritorial organisations and bodies at 0.07 per cent.”

VAT

The VAT Q4 2023 report released in Abuja said local payments recorded were N630.00 billion, while foreign VAT payments contributed N326.27 billion, and import VAT contributed N244.04 billion in Q4 2023.

The report said on a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75 per cent.

“This was followed by activities of other services organisations with 61.98 per cent.”

“On the other hand, activities of extraterritorial organisations and bodies had the lowest growth rate with –19.44 per cent, followed by financial and insurance with –8.46 per cent.”

In terms of sectoral contributions, the report showed the top three largest shares in Q4 2023 were manufacturing with 13.24 per cent, information and communication with 10.02 per cent, and mining and quarrying with 7.91 per cent.

“On the other hand, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 per cent.

“This was followed by activities of extraterritorial organisations and bodies, and water supply, sewerage, waste management and remediation activities with 0.03 per cent.

“This was closely followed by activities of real estate with 0.07 per cent and agriculture, forestry and fishing activities with 0.10 per cent.”

The report, however, said on a year-on-year basis, VAT collections in Q4 2023 increased by 72.12 per cent from Q4 2022.