Nigeria’s electricity, gas, steam, and air conditioning supply sector contributed a total of N62.12 billion in Company Income Tax (CIT) in 2025.
This is according to data released by the National Bureau of Statistics (NBS).
The figure represents a decline from the N77.97 billion recorded in 2024, indicating a year-on-year contraction in tax contributions from the energy supply segment.
The latest data highlights weakening performance in the sector despite broader resilience in Nigeria’s corporate tax base.
A quarterly breakdown shows that tax contributions fluctuated significantly throughout the year, reflecting operational and macroeconomic pressures affecting companies in the sector.
What the data is saying
The NBS data reveals a mixed performance across quarters, with a noticeable decline in the latter half of the year.
- The sector remitted N10.13 billion in Q1 2025, which rose sharply to N24.68 billion in Q2, the highest for the year.
- Collections dropped to N15.47 billion in Q3 and further declined to N11.84 billion in Q4.
- Overall CIT collections across all sectors fell 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 still recorded a 13.38 percent year-on-year increase compared to Q4 2024.
The data also shows that in Q4 2025, domestic CIT accounted for N819.83 billion, while foreign CIT contributed N668.21 billion, indicating a relatively balanced tax structure.
Get up to speed
The performance of the electricity and gas sector comes amid ongoing structural and economic challenges in Nigeria’s energy value chain.
- Energy companies continue to grapple with rising costs, infrastructure limitations, and liquidity challenges within the power market.
- The sector remains a critical component of Nigeria’s economy, supporting industrial activity and overall growth.
These challenges have continued to affect profitability and tax remittances from operators within the electricity supply industry.
More Insights
The broader tax environment provides additional context to the sector’s performance in 2025.
- CIT collections showed strong momentum earlier in the year, rising to N2.96 trillion in Q3 2025 from N2.78 trillion in Q2, reflecting a 6.55 percent increase.
- However, this growth was reversed in Q4 with a sharp contraction, suggesting possible seasonal or economic shocks.
- The decline in the power sector’s tax contribution aligns with this wider slowdown in corporate tax performance.
This trend suggests that while the overall tax base remains resilient, sector-specific challenges continue to weigh on performance.
What you should know
Recent fiscal reforms by the federal government are expected to reshape Nigeria’s tax landscape and improve revenue generation.
- 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 Joint Revenue Board (Establishment) Bill.
- The reforms aim to enhance tax administration, improve compliance, and expand government revenue over time.
