Nigeria’s Corporate Income Tax Soars 40% to ₦2.78 Trillion in Q2 2025
Nigeria’s Company Income Tax (CIT) revenue demonstrated significant growth in the second quarter of 2025, reaching a robust ₦2.78 trillion. This figure, reported by the National Bureau of Statistics (NBS), marks a substantial 40.27% increase compared to the ₦1.98 trillion recorded in the first quarter of the year.
This sharp surge in CIT collections reflects a combination of improved corporate profitability, enhanced tax compliance, and favorable economic dynamics across key sectors of the Nigerian economy.
Table of Contents
Q2 2025 Revenue Snapshot and Growth
Sectoral Drivers of Quarter-on-Quarter Growth
Top Sectoral Contributions to Total CIT Revenue
Year-on-Year Comparison and Historical Context
1. Q2 2025 Revenue Snapshot and Growth
The NBS report highlights that domestic companies were the primary drivers of this revenue surge, underscoring the strength of the local economy.
Total CIT Revenue (Q2 2025): ₦2.78 Trillion
Quarter-on-Quarter Growth: 40.27%
Domestic CIT Payments: ₦2.31 Trillion (83% of total)
Foreign CIT Collections: ₦469.36 Billion (17% of total)
Despite economic headwinds, the Q2 2025 figure also represents a 12.66% year-on-year increase when compared to Q2 2024, signaling moderate but steady improvement in government revenue mobilization.
2. Sectoral Drivers of Quarter-on-Quarter Growth
Several sectors experienced explosive growth in their CIT remittances between Q1 and Q2 2025, reflecting major financial performance improvements.
| Sector | Quarter-on-Quarter Growth | Key Drivers |
| Financial and Insurance | 772.29% | Improved profitability of banks, FinTechs, and insurance firms following strong half-year earnings. |
| Wholesale and Retail Trade | 538.38% | Increased commercial activity and motor vehicle repair. |
| Households as Employers | 526.79% | (Negligible overall contribution) |
Conversely, some sectors experienced sharp declines: Activities of extraterritorial organizations and bodies dropped by –45.01%; Education by –26.61%; and Public Administration, Defence, and Compulsory Social Security by –18.17%. The contraction in public-funded sectors points to persistent structural and fiscal challenges.
3. Top Sectoral Contributions to Total CIT Revenue
In terms of overall contribution to the ₦2.78 trillion haul, the financial sector maintained its dominance, followed by manufacturing and the extractive industry.
| Ranking | Sector | Contribution to Total CIT (Q2 2025) |
| 1st | Financial and Insurance Activities | 44.13% |
| 2nd | Manufacturing | 15.57% |
| 3rd | Mining and Quarrying | 9.18% |
The financial sector’s dominant contribution reflects its continuous expansion and the influx of strong capital flows. The manufacturing sector’s robust contribution was bolstered by increased production output, while Mining and Quarrying benefited from higher commodity prices.
Sectors with negligible contributions include activities of households as employers (0.01%), extraterritorial organizations and bodies (0.04%), and water supply/waste management (0.04%).
4. Year-on-Year Comparison and Historical Context
For context, the NBS also provided data from the previous year:
Q2 2024 CIT Collection: ₦2.47 trillion (Representing a 150.83% increase over Q2 2023)
Q1 2024 CIT Collection: ₦984.61 billion
The historical data shows that domestic payments have increasingly formed the bulk of CIT revenue: in Q2 2024, local payments amounted to ₦1.35 trillion, while foreign CIT contributed ₦1.12 trillion, a structure that further evolved in Q2 2025 toward greater domestic reliance. The agriculture, forestry, and fishing sectors exhibited the highest Q-o-Q growth rate in Q2 2024 at 474.50%.
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