In a significant fiscal achievement, the Federal Government of Nigeria reported a robust collection of N1.75 trillion from Company Income Tax (CIT) during the third quarter of 2023. This represents an impressive surge of 115.90% compared to the corresponding period in 2022.
The data, sourced from the National Bureau of Statistics (NBS) in its Q3 2023 CIT report, indicates a month-on-month increase of 14.27% over the N1.53 trillion garnered in Q2 2023.
The NBS also highlighted a positive trajectory in Value Added Tax (VAT) collections, with the Federal Government’s income rising from N781.35 billion in Q2 2023 to N948.07 billion in the third quarter, denoting a quarter-on-quarter growth rate of 21.34%.
On a year-on-year basis, VAT collections in Q3 2023 witnessed an impressive 51.60% increase from Q3 2022.
Breaking down the CIT payments, local contributions stood at N651.63 billion, while foreign CIT payments significantly contributed N1.10 trillion during the mentioned period.
The NBS report revealed that the education sector recorded the highest quarter-on-quarter growth rate at 59.60%, followed closely by public administration and defense, compulsory social security, which experienced a growth rate of 57.04%.
In contrast, activities of households as employers, undifferentiated goods and services-producing activities of households for own use displayed the lowest growth rate at 74.34%, followed by water supply, sewerage, waste management, and remediation activities at 73.25%.
Sector-wise, the report outlined the top three contributors to CIT in Q3 2023 as information and communication (26.18%), manufacturing (23.90%), and mining and quarrying (11.86%).
For VAT, local payments reached N522.08 billion, foreign VAT payments amounted to N204.58 billion, and import VAT contributed N221.41 billion in Q3 2023.
Agriculture, forestry, and fishing recorded the highest growth rate at 91.87%, followed by the activities of extraterritorial organizations and bodies at 80.25%.
On the flip side, real estate exhibited the lowest growth rate at 37.68%, followed by construction at 9.54%.
In terms of sectoral contributions to VAT, manufacturing led with 26.51%, followed by information and communication with 19.04%, and financial and insurance activities with 12.31%.
The NBS report emphasized the marginal share of certain sectors, noting that activities of households as employers and undifferentiated goods and services-producing activities of households for own use recorded the least share at 0.02%, followed by water supply, sewerage, waste management, and remediation activities at 0.06%, and activities of extraterritorial organizations and bodies at 0.10%.
This impressive revenue performance signals positive economic indicators and underscores the government’s commitment to fiscal responsibility and efficient revenue generation strategies.
The Federal Government’s sustained efforts in enhancing tax collections will likely have far-reaching implications for funding critical developmental projects and ensuring economic stability.
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