Nigeria’s Company Income Tax collections dropped sharply to N1.49 trillion in the fourth quarter of 2025, representing a significant decline from the N2.96 trillion recorded in the preceding quarter.
The figures were released in the latest report by the National Bureau of Statistics, which showed that the decline reflects a 49.81 per cent contraction on a quarter-on-quarter basis.
According to the data, the drop highlights short-term volatility in corporate tax inflows amid evolving macroeconomic conditions and possible seasonal adjustments in corporate earnings and remittances.
A breakdown of the Q4 2025 collections showed relatively balanced contributions from domestic and foreign sources.
Domestic Company Income Tax accounted for N819.83 billion, while foreign CIT payments contributed N668.21 billion during the period.
Despite the sharp quarterly decline, the report showed that collections increased by 13.38 per cent compared with the fourth quarter of 2024, suggesting resilience in Nigeria’s corporate tax base over the longer term.
Sectoral performance during the quarter was mixed, with some industries posting strong growth while others recorded significant declines.
Activities of extraterritorial organisations and bodies recorded the highest growth at 75.15 per cent, followed by the education sector at 54.20 per cent and real estate at 27.25 per cent.
However, several sectors experienced steep contractions, including accommodation and food services which declined by 67.11 per cent, household employment which fell by 63.49 per cent, and mining and quarrying which dropped by 49.63 per cent.
Financial and insurance activities accounted for the largest share of total CIT contributions at 18.74 per cent. Manufacturing followed with 17.30 per cent, while mining and quarrying contributed 15.04 per cent.
At the lower end of the contribution spectrum, activities of households as employers accounted for just 0.002 per cent of total collections. Water supply, sewerage, and waste management activities contributed 0.04 per cent, while extraterritorial organisations added 0.17 per cent.
The tax performance comes amid broader fiscal reforms introduced by the Federal Government to strengthen Nigeria’s revenue framework.
In June 2025, Bola Ahmed Tinubu signed into law four key tax reform bills aimed at restructuring the country’s tax administration and revenue system.
The legislation includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
Earlier in March, the Federal Government also introduced new presumptive tax rules targeting Micro, Small, and Medium Enterprises (MSMEs) to simplify tax compliance and encourage more businesses to enter the formal economy.
Prior to the fourth-quarter decline, CIT revenue had risen to N2.96 trillion in the third quarter of 2025, representing a 6.55 per cent increase from the N2.78 trillion recorded in the second quarter.
That growth was largely supported by strong contributions from both domestic and foreign companies, with foreign CIT payments contributing a larger share due to the continued profitability of multinational firms operating in Nigeria.
