Income tax by local companies in Nigeria grew by a mammoth 249.2 percent in the second quarter of 2024, according to the latest report by the National Bureau of Statistics (NBS).
The CIT, also known as corporate tax, is levied on the profits made by companies operating in Nigeria. It is regulated by the Companies Income Tax Act (CITA) and enforced by the Federal Inland Revenue Service (FIRS).
Currently, the tax is charged at 30 percent for companies with more than N100 million in turnover, and 20 percent for companies with a turnover ranging between N25 million and N100 million.
NBS said local companies contributed N1.35 trillion in taxes to the federal government in Q2, compared to N386.49 billion in the previous quarter.
While foreign firms operating in Nigeria contributed N1.12 trillion in Q2 — an increase of 87.2 percent compared to the N598.13 billion reported in Q1.
