'How Nigeria’s CIT revenue fell by 13.5% in 2020'

The federal government of Nigeria has generated a total sum of N1.41 trillion from Company Income Tax (CIT) in 2020, representing a decline of 13.5 per cent when compared to the figure recorded in 2019.

The National Bureau of Statistics (NBS) in a new report, titled: ‘Company Income Tax by Sectors (Q4 2020)’, revealed that Professional services (including telecoms) generated the highest amount of CIT in both 2020 and 2019.

According to the nation’s statistics agency, Professional services’ CIT contribution slightly increased by 1.42 per cent to N180.26 billion in 2020 from N177.74 billion in 2019.

Other top contributors of CIT in 2020 include Manufacturing with N100.37 billion; Banks & Financial institutions declared N96.40 billion; Commercial and Trading realized N68.54 billion; and Breweries, Bottling and Beverages generated N53.15 billion for the year under review.

Textile & Garment and Mining industries, however, contributed the least amount of CIT in both 2020 and 2019.

Although, textile and garment industry recorded a 100 per cent jump in CIT generation to N359.96 million in 2020 from N179.78 million in 2019, while mining industry recorded an increase of 19.69 per cent to N343.21 million in CIUT revenue in 2020 from N286.74 million in 2019.

Other laggards in 2020 were; local government councils (N1.12 billion); chemicals, paints and allied industries (2.07 billion); and publishing, printing and paper packaging (N2.12 billion).

Meanwhile, in six years, between 2015 and 2020, Nigeria generated total revenue of N8.11 trillion from CIT.

In 2015, Nigeria generated N1.38 trillion from CIT; N1.02 trillion in 2016; N1.25 trillion in 2017; N1.42 trillion in 2018; N1.63 trillion in 2019; and N1.41 trillion in 2020.