Agriculture Dominates CIT Growth with 474.50% Surge in Q2 2024 – NBS
Nigeria’s agricultural sector has emerged as the front-runner in Company Income Tax (CIT) growth for the second quarter of 2024, showcasing an astounding 474.50% increase on a quarter-on-quarter basis, according to the latest figures released by the National Bureau of Statistics (NBS) on Monday, September 9.
Company Income Tax is a tax levied on the profits made by companies operating in Nigeria. It is regulated by the Companies Income Tax Act (CITA) under the supervision of the Federal Inland Revenue Service (FIRS).
The overall CIT for Q2 2024 surged to an impressive N2.47 trillion, a remarkable 150.83% leap from the N984.61 billion recorded in the first quarter of the year. Of this, local payments contributed N1.35 trillion, while foreign CIT payments made up N1.12 trillion.
The NBS report highlighted agriculture, forestry, and fishing as the standout performers with a 474.50% growth rate, underscoring the sector’s rising impact on Nigeria’s economic landscape. This robust performance underscores the sector’s growing role in the national economy.
Following closely were the financial and insurance activities sector and the manufacturing sector, which reported substantial increases of 429.76% and 414.15%, respectively. These sectors also demonstrated strong contributions to the overall CIT revenue.
However, not all sectors fared equally well. The report from NBS noted that some sectors struggled during Q2 2024. The activities of households as employers and undifferentiated goods- and services-producing activities for household use experienced a downturn with a -30.22% growth rate. Extraterritorial organizations and bodies also faced a decline with a -15.67% growth rate.
In terms of sectoral contributions to total CIT revenue, the financial and insurance activities sector led with a 15.53% share, followed by manufacturing at 8.99%, and information and communication at 7.84%. On the other end of the spectrum, sectors such as the activities of households as employers contributed a negligible 0.00%, while water supply, sewerage, and waste management activities contributed 0.02%, and extraterritorial organizations added 0.03%.
Year-on-year comparisons reveal a robust 59.52% increase in CIT collections for Q2 2024, up from N1.55 trillion in Q2 2023. This growth reflects a broader economic recovery and expansion across key sectors, signaling a positive trajectory for Nigeria’s economic landscape.
