Nigeria’s mining and quarrying sector contributed a total of N723.33 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 N520.34 billion recorded in 2024, demonstrating the sector’s rising importance in Nigeria’s revenue mix.
This performance highlights growing fiscal contributions from a sector that has historically played a marginal role in government earnings.
The data also reflects strong but uneven quarterly contributions, pointing to both improved performance and underlying structural challenges within the sector.
What the data is saying
The NBS figures show that the mining sector recorded notable growth across 2025, despite fluctuations during the year.
- The sector generated N142.87 billion in Q1, rising to N212.27 billion in Q2.
- Collections peaked at N244.86 billion in Q3 before declining to N123.34 billion in Q4.
- The total N723.33 billion represents a year-on-year increase of over 38% compared to N520.34 billion recorded in 2024.
- In 2024, quarterly collections stood at N80.92 billion, N170.73 billion, N169.14 billion, and N99.54 billion respectively.
The overall trend points to improving tax compliance and stronger regulatory oversight, even as the sector experienced a slowdown in the final quarter.
Get up to speed
Nigeria’s mining sector has long underperformed despite the country’s vast mineral resources.
- The sector contributes less than five percent to Nigeria’s Gross Domestic Product (GDP), reflecting years of underinvestment and policy neglect.
- Illegal mining activities, weak incentives, and inadequate infrastructure have constrained growth.
- Multiple revenue streams exist within the sector, including royalties and licensing fees, but have historically been underutilised.
Recent reforms and increased government attention are beginning to reposition the sector as a viable contributor to economic diversification.
The surge in tax revenue aligns with broader fiscal reforms and improved revenue administration.
- In June 2025, President Bola Ahmed Tinubu signed four major tax reform bills aimed at modernising Nigeria’s tax system.
- These include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
- A key reform is the transfer of mineral royalty collection to the Nigeria Revenue Service (NRS), aimed at reducing leakages and improving accountability.
- The Federal Government also generated N6.96 billion in mining fees in Q1 2025, highlighting additional revenue potential beyond CIT.
What you should know
Nairametrics earlier reported that 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.
The decline represents a 49.81% quarter-on-quarter contraction, reflecting a slowdown in corporate tax inflows during the period.
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
