Nigeria’s Company Income Tax (CIT) collections fell sharply in the fourth quarter of 2025, dropping to N1.49 trillion from N2.96 trillion in the preceding quarter.
This is according to the latest data from the National Bureau of Statistics (NBS). The decline represents a 49.81% quarter-on-quarter contraction, reflecting a slowdown in corporate tax inflows during the period.
The drop comes amid evolving macroeconomic conditions and possible seasonal adjustments in corporate earnings and remittances, highlighting short-term volatility in tax revenue generation.
What the data is saying
The breakdown of Q4 2025 CIT collections shows a relatively balanced contribution from domestic and foreign sources.
- Domestic Company Income Tax accounted for N819.83 billion.
- Foreign CIT payments contributed N668.21 billion.
- Quarter-on-quarter, total collections contracted by 49.81%, from N2.96 trillion in Q3 2025.
Despite the steep quarterly decline, CIT collections rose 13.38% year-on-year compared to Q4 2024, suggesting resilience in Nigeria’s corporate tax base over the longer term.
More Insights
Sectoral performance in Q4 2025 was mixed, with some industries recording strong growth while others saw significant contractions.
- Activities of extraterritorial organisations and bodies posted the highest growth at 75.15%, followed by education at 54.20%, and real estate at 27.25%.
- Sectors with steep declines included accommodation and food services (-67.11%), household employment (-63.49%), and mining and quarrying (-49.63%).
- Financial and insurance activities led total CIT contributions, accounting for 18.74%, followed by manufacturing at 17.30% and mining and quarrying at 15.04%.
At the lower end of the spectrum, activities of households as employers contributed just 0.002%, while water supply, sewerage, and waste management accounted for 0.04%, and extraterritorial organisations added 0.17%.
What you should know
In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to simplify compliance and provide a clearer pathway into the formal economy.
- In June 2025, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework.
- The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
- In March, Nairametrics reported that Company Income Tax (CIT) revenue rose to N2.96 trillion in the third quarter of 2025, representing a 6.55 per cent increase from N2.78 trillion recorded in Q2 2025.
CIT performance in Q3 2025 was underpinned by contributions from both domestic and foreign sources.
- Domestic CIT payments accounted for N1.21 trillion of the total collections.
- Foreign CIT payments contributed a larger share of N1.75 trillion, reflecting continued profitability among multinational companies and cross-border operations.
Overall, the 6.55% quarter-on-quarter increase underscores steady growth in corporate earnings and tax compliance.
