Company Income Tax (CIT) collections soared to N2.96 trillion in the third quarter of 2025, a remarkable 67 per cent increase from N1.77 trillion recorded in the same period of 2024.
This was disclosed by value-added tax (VAT) and CIT data released by the National Bureau of Statistics (NBS). The data highlighted a dramatic year-on-year (Y/Y) jump in CIT in last year’s Q3, one of the strongest quarterly performances in recent years.
The surge also underscored significant growth in corporate earnings and stronger compliance in tax remittances across the formal sector. The steep rise came ahead of the January implementation of the tax reform, which analysts said could significantly increase tax revenue.
The government is hoping to leverage the reform to significantly increase the tax revenue. The country’s tax-to-revenue ratio hovers around 10 per cent compared to the 16 per cent regional average.
The current administration is targeting an 18 per cent tax-to-output ratio. Compared to the first nine months of 2024, CIT recorded a moderate growth last year when it was N7.72 trillion, a 48 per cent Y/Y growth on N5.22 trillion recorded in 2024.
