Nigeria’s Company Income Tax (CIT) collections declined sharply in the first quarter of 2026, reflecting weaker tax receipts across key sectors of the economy despite strong contributions from financial services, mining, and manufacturing.

Data released by the National Bureau of Statistics (NBS) showed that CIT collections stood at N1.37 trillion in Q1 2026, representing an 8.08% decline from the N1.49 trillion recorded in the fourth quarter of 2025.

The latest figures also showed a steeper annual decline, with CIT revenue falling by 31.05% compared to the corresponding period of 2025, highlighting the pressures facing corporate earnings and tax generation.

What the data is saying

According to data from the NBS, foreign companies accounted for the largest share of Company Income Tax (CIT) revenue collected in the first quarter of 2026, underscoring the significant role of multinational businesses in Nigeria’s corporate tax base.

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  • During the period, foreign CIT payments amounted to N828.82 billion, while domestic companies contributed N538.91 billion, bringing total Company Income Tax collections to N1.37 trillion.

Despite the strong contribution from foreign firms, overall CIT revenue declined during the quarter.

The figures show that foreign companies accounted for more than 60% of total CIT revenue in the first quarter, highlighting their continued dominance in Nigeria’s corporate tax landscape and their importance to government non-oil revenue generation.

More insights

Sectoral analysis revealed significant variations in tax performance across different segments of the economy.

  • Water supply, sewerage, waste management and remediation activities recorded the highest quarter-on-quarter growth in CIT payments at 485.71%.
  • Activities of households as employers and undifferentiated goods and services-producing activities for own use followed with a growth rate of 197.04%.
  • Agriculture, forestry and fishing recorded the sharpest decline at 73.52%.
  • The construction sector also experienced a significant contraction, with CIT payments falling by 63.15%.

In terms of sectoral contributions, financial and insurance activities remained the largest contributor to Company Income Tax revenue, accounting for 24.73% of total collections during the quarter.

  • Mining and quarrying contributed 16.06%, while the manufacturing sector accounted for 13.82%.

At the lower end of the spectrum, activities of households as employers and undifferentiated goods and services-producing activities for own use contributed just 0.01%, followed by activities of extra-territorial organisations and bodies at 0.13% and water supply, sewerage, waste management and remediation activities at 0.38%.

What you should know

Nigeria has intensified efforts to strengthen non-oil revenue generation as part of broader fiscal reforms aimed at reducing dependence on crude oil earnings.

Company Income Tax remains one of the country’s key sources of internally generated revenue.

In June 2025, President Bola Tinubu signed into law four landmark tax reform bills designed to modernise Nigeria’s fiscal and revenue administration framework. The legislation comprises the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The new tax laws subsequently came into effect in January 2026, ushering in a new era of tax administration and revenue collection in the country.

In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.