FG Rakes in ₦416.01Bn from CIT in Q3 of 2020

National Bureau of Statistics (NBS) revealed that Nigeria in the third quarter of 2020 (Q3 2020) generated ₦416.01 billion from Company Income Tax (CIT).

CIT is a tax on the profits of incorporated entities in Nigeria, it also includes the tax on the profits of non-resident companies carrying on business in Nigeria.

The data implies a 3.48 percent increase against ₦402.03 billion generated in second quarter of 2020 (Q2 2020).

This was contained in NBS report, titled: ‘Company income tax by sectors (2015 – Q3 2020)’, released by the bureau.

Sectors that generated the highest amount of CIT, are: professional services, including telecoms, with ₦55.52 billion; banks and financial institutions with ₦24.05 billion while sectors with the least amount of CIT were mining; textile and garment; industry and local government councils with ₦120.93 million, ₦161.51 million and ₦321.72 million respectively.

“Out of the total amount generated in Q3 2020, ₦244.70 billion was generated as CIT locally while ₦70.34 billion was generated as foreign CIT payment,” the report read.

It also showed that ₦100.97 billion was generated as CIT from other payments.

Meanwhile, Q3 2020 CIT revenue increased by 27.36 percent in Q3 2015 (₦326.65 billion); 22.43 percent in Q3 2016 (₦339.79 billion); 8.07 percent in Q3 2017 (₦384.93 billion); 14.71 percent in Q3 2018 (₦362.66 billion), however, it decreased by 20.31 percent compared to ₦520.89 billion generated in Q3 2019.

For CIT generated year-on-year, 2015 revenue total was ₦1.88 trillion; 2016 CIT decreased by 45.74 percent to ₦1.02 trillion: 2017 revenue increased to ₦1.25 billion; 2018 had ₦1.42 trillion, while 2019 CIT revenue was highest with N1.63 billion.