“Tinubu Govt Forecasts Nigerian Companies to Generate N9.3 Trillion in Gross Operating Profits by 2024

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The Nigerian government has projected that corporate entities across the country will collectively amass a gross operating profit of N9.3 trillion in 2024. It is anticipated that this will consequently yield a company income tax revenue of N3 trillion, a significant increase from the N1.9 trillion budgeted for 2023. The Medium Term Expenditure Framework published by the government outlines these financial estimates for the coming years.

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Furthermore, the government aims for a total of N20.69 trillion in the Net Federal Account revenue pool, to be allocated among various governmental bodies including the Federal Government, States, LGAs, National Assembly, and Judiciary.

Under the plan, corporate taxes are set to reach N3 trillion by 2024, with subsequent growth expected to reach N3.3 trillion by 2025 and N3.7 trillion by 2026. These projections are based on an estimated nominal GDP, Companies’ Profitability Ratio, and an anticipated improvement in collection efficiency. The government also expects a broadened tax net and sustained growth in online transactions, while maintaining the VAT rate at 7.5%.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has emphasized that the government does not intend to impose higher tax rates on Nigerians. Instead, the committee aims to reduce the number of taxes and levies, thereby alleviating the burden on individuals and businesses. President Tinubu has tasked the committee with enhancing revenue generation and the business environment, striving to achieve an 18% Tax-to-GDP ratio within the next three years.”

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