Nigeria’s manufacturing sector contributed a total of N881.29 billion in Company Income Tax (CIT) in 2025.
This is according to the latest data released by the National Bureau of Statistics (NBS).
The figure represents a significant increase from the N663.46 billion recorded in 2024, reflecting strong year-on-year growth in the sector’s tax contributions.
The latest data demonstrates the sector’s growing importance to Nigeria’s revenue base and its role in driving industrial activity.
The performance comes amid broader fluctuations in corporate tax collections, with a notable slowdown recorded in the final quarter of the year despite strong cumulative growth.
What the data is saying
The NBS data show that manufacturing sector tax contributions were strong but uneven across the quarters.
- The sector recorded N107.90 billion in Q1 2025, rising sharply to N360.20 billion in Q2, the highest quarterly contribution for the year.
- Collections moderated to N271.34 billion in Q3 before declining to N141.84 billion in Q4.
- Total CIT collections across all sectors dropped to N1.49 trillion in Q4 2025 from N2.96 trillion in Q3, representing a 49.81 percent quarter-on-quarter decline.
Despite the quarterly drop, total CIT increased by 13.38 percent year-on-year compared to Q4 2024.
Data further shows that domestic CIT contributed N819.83 billion in Q4, while foreign CIT accounted for N668.21 billion, reflecting a balanced contribution between local and international companies.
The total CIT for 2025 was N9.218 trillion, according to the NBS data.
Get up to speed
In February, Nairametrics reported that Nigeria’s manufacturing sector accounted for 8.05% of real GDP in 2025, down from 8.24% recorded in 2024.
- The manufacturing sector has continued to strengthen its position as a key driver of Nigeria’s non-oil economy.
- Industries such as consumer goods, cement, and industrial materials have played a major role in boosting output and revenue.
- The sector remains central to Nigeria’s economic diversification efforts, reducing reliance on oil revenues.
Despite these gains, manufacturers continue to face challenges including high production costs, exchange rate volatility, and infrastructure deficits.
More Insights
The broader corporate tax environment provides additional context for the sector’s performance.
- CIT collections rose to N2.96 trillion in Q3 2025 from N2.78 trillion in Q2, representing a 6.55 percent increase.
- This upward trend was reversed in Q4 with a sharp contraction, reflecting wider economic pressures.
- The manufacturing sector’s decline in Q4 aligns with this broader slowdown in corporate tax collections.
The data suggests that while growth remains strong overall, macroeconomic conditions continue to influence quarterly performance.
What you should know
Earlier, Nairametrics reported that Nigeria’s manufacturing sector expanded more slowly in January 2026 as rising costs, weak demand, and structural challenges hit chemicals, pharmaceuticals, plastics, and rubber sub-sectors hardest.
- In January, the Federal Government introduced the Nigerian Industrialisation Policy, an initiative designed to drive value addition, industrial growth, and employment creation across the country.
- Recent fiscal reforms are expected to shape the future of tax collection and revenue generation in Nigeria.
- In June 2025, President Bola Ahmed Tinubu signed four major tax reform bills into law.
These include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
The reforms aim to improve tax administration, boost compliance, and enhance revenue mobilisation.
