Ten leading commercial banks in Nigeria paid a combined N987.40bn in corporate income tax to the Federal Government in 2024, a reflection of surging profitability driven by high interest rates and government borrowing.
The tax remittances were disclosed in the banks’ consolidated and separate financial statements filed with the Nigerian Exchange Limited for the year ended December 31, 2024.
An analysis of the financial reports from Access Holdings, United Bank for Africa (UBA), First HoldCo Plc, Sterling Financial Holdings, Wema Bank, Zenith Bank, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, Fidelity Bank, and FCMB shows a sharp rise in tax contributions compared to 2023, with some lenders recording increases of over 600 per cent.
UBA topped the list with N241.12bn in corporate tax, a 6.07 per cent increase from N227.30bn in 2023. Zenith Bank followed with N201.62bn, marking a staggering 468.16 per cent rise from N35.47bn.
GTCO posted N175.03bn in tax payments, a 205.48 per cent increase, while Access Holdings remitted N159.26bn, representing a 109.51 per cent rise. Fidelity Bank also saw a notable surge, paying N82.42bn—up 306.99 per cent.
First HoldCo paid N58.66bn, up from N28.17bn in 2023. Stanbic IBTC and FCMB paid N35.19bn and N18.36bn respectively, recording increases of 106.56 per cent and 101.92 per cent.
Sterling Financial Holdings paid N2.48bn, up 118.45 per cent from N1.13bn, while Wema Bank showed the most dramatic increase—638.73 per cent—rising from N1.80bn in 2023 to N13.27bn in 2024.
Corporate income tax, as defined by the Federal Inland Revenue Service (FIRS), is levied on profits earned by registered companies in Nigeria.
Commenting on the surge, Teslim Shitta-Bey, Chief Economist and Managing Editor at Proshare, linked the improved bank performance to the current interest rate regime.
“The increase in profit is a direct result of the high interest rate environment,” he explained. “Banks are earning more from treasury instruments and retail lending.
The Federal Government’s aggressive borrowing through the treasury bills market has pushed up yields, allowing banks to benefit from higher returns on investment.”
However, he warned that the gains come with trade-offs.
“Funds that could have gone into dividends or risk assets are now largely tied up in government securities. While banks are thriving, this shift reflects a tougher business environment where private sector credit is being sidelined,” Shitta-Bey added.
The Federal Government recorded N6.86tn in revenue inflows into the federation account in Q3 2024, according to previous reports, representing a 7.48 per cent year-on-year increase.
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