Nigeria’s Company Income Tax (CIT) collections fell sharply in the fourth quarter of 2025, dropping to N1.49 trillion from N2.96 trillion in the previous quarter, representing a 49.8% quarter-on-quarter decline, according to the National Bureau of Statistics (NBS).
The steep fall reflects seasonal fluctuations and evolving macroeconomic conditions affecting corporate earnings and remittances during the period. Despite the quarterly drop, CIT revenue grew 13.4% compared to the same period in 2024, indicating resilience in Nigeria’s corporate tax base over the longer term.
Breakdown of Collections
Domestic companies contributed N819.83 billion, while foreign entities paid N668.21 billion. Sectoral performance was mixed, with extraterritorial organizations recording the highest growth of 75.2%, followed by education at 54.2% and real estate at 27.3%.
In contrast, accommodation and food services contracted by 67.1%, household employment fell 63.5%, and mining and quarrying declined by 49.6%. The financial and insurance sectors remained the largest contributors, accounting for 18.7% of total CIT, followed by manufacturing at 17.3% and mining at 15%.
Policy Context
The federal government introduced new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) in March 2025, aimed at simplifying compliance and encouraging formalization. Earlier, in June 2025, President Bola Tinubu signed four tax reform bills, including the Nigeria Tax Bill and the Nigeria Revenue Service (Establishment) Bill, to strengthen Nigeria’s fiscal framework.
Analysts noted that while Q4’s sharp decline signals short-term volatility, structural reforms and improved compliance mechanisms could stabilize CIT inflows in the coming quarters.
