Company income tax report released recently by the National Bureau of Statistics (NBS) showed that Nigeria recorded a sum of N347.81 billion in the fourth quarter of 2021, dropping by 26.4% compared to N472.52 billion generated in the previous quarter.
According to the report, a total of N258.85 billion was collected from companies operating within the country, while the remaining N88.96 billion was recorded as foreign CIT payments.
Annually, Nigeria generated the highest annual company income tax revenue based on data from Q1 2015 with N1.69 trillion, representing 19.6% and 3.6% increase compared to N1.41 trillion and N1.63 trillion recorded in the previous year and 2019 respectively.
The N113.62 billion drop in foreign CIT payments is responsible for the significant decline recorded in the period under review.
The information and communication sector led the list with N51.1 billion in income tax paid to the federal government.
Electricity, professional services, construction, and trade (wholesale and retail) sectors ramped up effort with their taxes.
A revenue crunch from Nigeria’s problem in recent times resulting in more debt acquisition, decline in crude oil earnings and the continuous payment of fuel has been attributed to being the cause of underperformance in revenue remittances across sectors.