Nigeria, which has the largest economy in Africa, leans partly on its tax revenue to fund its government. The tax system in Nigeria is overseen by various tax authorities, including the Federal Inland Revenue Service (FIRS) at the federal level and the State Internal Revenue Services at the state level. The figures below are based on data from this organization.
The FIRS is in charge of collecting Company Income Tax (CIT) in the country. Based on data available on the site of the National Bureau of Statistics, the CIT for Q3 2023 was recorded at N1.75 trillion, reflecting a growth rate of 14.27% on a quarter-over-quarter basis from N1.53 trillion in Q2 2023.
As to the information available on the official website of FIRS, the CIT is a tax that is levied on a business's total earnings. Thirty percent of a company's total earnings is the tax rate.
Additionally, the NBS report states that during the period under review, the total amount of local CIT payments was N651.63 billion, while the total amount of foreign CIT payments was N1.10 trillion.
The aggregate of the CIT encompasses a wide range of Nigerian sectors and businesses. These industries have varying degrees of tax quotas, with some being the largest and some contributing the littlest as seen below.
Having said that, below are the industries that contributed the least to the country's total CIT in Q3 of 2023.
1. | Activities of households as employers | ₦15.98 |
2. | Water supply, sewage, waste management and remediation activities | ₦242.25 |
3. | Activities of extraterritorial organizations and bodies | ₦667.93 |
4. | Real estate activities | ₦2,987.31 |
5. | Accommodation and food services activities | ₦3,362.44 |
6. | Human health and social work activities | ₦4,008.65 |
7. | Administrative and support service activities | ₦5,098.15 |
8. | Arts, entertainment and recreation | ₦5,670.90 |
9. | Education | ₦7,000.40 |
10. | Professional scientific and technical activities | ₦8,486.03 |
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