Our chart today, drawn from company income tax (CIT) data produced by the National Bureau of Statistics (NBS), shows that total CIT receipts into the federation’s account amounted to NGN1.5trn in Q2 ’23. The amount represents a substantial rise in CIT collection compared to the NGN714bn and NGN469bn collected in Q2 ’22 and Q1 ’23 respectively. Cumulatively, the total CIT receipts in Q2 ’23 imply gross CIT collection of almost NGN2.0trn or an increase of 58% y/y. The sum represents the federation’s gross CIT receipts, the majority (nearly 50%) of which go to the federal government..Thank you for reading this post, don't forget to subscribe!
Of the total CIT collections during the quarter, domestic CIT payments totalled NGN1.0trn, while foreign CIT receipts amounted to NGN505bn, representing contributions of 67% and 33% respectively.
Narrowing down on contributions by sectors, manufacturing contributed the largest share to CIT revenue collections, with a total sum of NGN263bn, or 26% of domestic collections and 17% of the total CIT collected.
In absolute terms, CIT receipts from the manufacturing sector increased markedly by nearly NGN200bn. This represents the highest quarterly increase among all the sectors.
The financial and insurance sector was the second largest contributor to CIT revenue at NGN251bn.
The financial and insurance sector was up 263% q/q. It also saw the second-largest absolute increase of NGN182bn. Its share of collections was 24% and 16% of domestic and total CIT revenue respectively.
Information and communications round up the list of the top three CIT revenue generating sectors with total collections of NGN208bn, or 20% and 14% of domestic and total CIT revenue.
Based on the 2023 budget, the forecast revenue from CIT collection for the year is roughly c.NGN2.0trn.
Consequently, at the current run-rate, the H1 ’23 CIT revenue take of NGN1.5trn is comfortable tracking ahead of the pro-rata budget for the period.