The National Bureau of Statistics (NBS) has reported that total Company Income Tax (CIT) collections reached ₦2.47 trillion in Q2 2024, reflecting a remarkable 150.83% increase from ₦984.61 billion in the previous quarter.
This surge is largely due to local payments of ₦1.35 trillion and foreign CIT contributions of ₦1.12 trillion. Notably, the mining and quarrying sector contributed ₦170.73 billion, marking a substantial increase from ₦80.92 billion in Q1 2024, which translates to a 110.92% rise.
This represents a remarkable 204.83% year-on-year growth from ₦56.01 billion in Q2 2023. According to the NBS, other sectors such as agriculture, financial and insurance activities, and manufacturing also showed impressive growth rates of 474.50%, 429.76%, and 414.15%, respectively. Conversely, sectors like household activities and extraterritorial organisations experienced declines in tax contributions, with household activities seeing a negative growth rate of -30.22%.Here are the top 10 sectors contributing the most to CIT in Q2 2024, according to NBS data:
10. Professional, Scientific, and Technical Activities
In Q2 2024, this sector contributed ₦30.12 billion in CIT, a 166.82% increase from ₦11.29 billion in Q1 2024 and a 243.94% rise from ₦8.76 billion in Q2 2023. This growth indicates a rising demand for professional services.
9. Construction
The construction sector contributed ₦32.79 billion in Q2 2024, reflecting a quarterly increase of 208.37% from ₦10.63 billion in Q1 2024 and a 101.12% rise from ₦16.30 billion in Q2 2023. This growth is driven by large-scale infrastructure projects across the nation.
8. Other Service Activities
In Q2 2024, this sector paid ₦40.21 billion in CIT, an increase of 251.77% from ₦11.43 billion in Q1 2024 and a 41.03% rise from ₦28.51 billion in Q2 2023, suggesting more SMEs are formalizing and paying taxes.
7. Public Administration and Defence
This sector contributed ₦51.99 billion in Q2 2024, a 21.80% increase from ₦42.69 billion in Q1 2024 and an 81.68% rise from ₦28.61 billion in Q2 2023, reflecting enhanced government tax collection efforts.
6. Transportation and Storage
The transportation and storage sector contributed ₦52.48 billion in Q2 2024, representing a 306.19% increase from ₦12.92 billion in Q1 2024 and a 16.61% rise from ₦45.01 billion in Q2 2023, driven by investments in logistics and infrastructure.
5. Wholesale and Retail Trade
This sector contributed ₦74.28 billion in Q2 2024, marking a quarterly growth of 359.61% from ₦16.16 billion in Q1 2024 and a 46.48% year-on-year increase from ₦50.72 billion in Q2 2023, reflecting increased consumer spending.
4. Mining and Quarrying
Mining and quarrying paid ₦170.73 billion in Q2 2024, up from ₦80.92 billion in Q1 2024, translating to a 110.92% rise. This sharp increase is driven by heightened oil and gas extraction activities and solid mineral demand, despite challenges like illegal mining and environmental concerns.
3. Information and Communication
This sector contributed ₦193.65 billion in CIT, a quarterly increase of 298.97% from ₦48.54 billion in Q1 2024, although it saw a slight year-on-year decline of 6.95%.
2. Manufacturing
The manufacturing sector paid ₦221.97 billion in CIT in Q2 2024, experiencing a quarterly recovery of 413.91% from ₦43.17 billion in Q1 2024, despite a 15.50% year-on-year decline.
1. Financial and Insurance Activities
The financial and insurance sector topped CIT contributions in Q2 2024 with ₦383.57 billion, representing a 429.82% quarterly increase from ₦72.41 billion in Q1 2024 and a year-on-year rise of 53.00%.
The mining sector’s significant growth highlights its potential in Nigeria’s economy, as the government continues to implement reforms to enhance the sector’s contributions and address challenges.
