The Federal Government generated N1.37 trillion in Company Income Tax (CIT) during the first quarter of 2026, underscoring the continued importance of corporate taxation as a major source of government revenue despite a significant year-on-year decline in collections.
Although the revenue performance reflects strong tax contributions from businesses operating across key sectors of the economy, the report revealed that collections fell by 8.08 per cent when compared to the N1.49 trillion recorded in the fourth quarter of 2025.
The figure was disclosed in the recent Company Income Tax Report released by the National Bureau of Statistics (NBS), which showed that total CIT receipts stood at N1.37 trillion between January and March 2026.
More significantly, the report indicated that CIT revenue declined by 31.05 per cent on a year-on-year basis, highlighting the challenges facing businesses and the broader economy amid ongoing efforts to boost government revenue generation.
According to the NBS, foreign companies accounted for the larger share of tax payments during the quarter, contributing N828.82 billion, while domestic companies remitted N538.91 billion.
Economic analysts say the figures demonstrate the growing role of foreign-owned enterprises in Nigeria’s tax revenue profile, particularly in sectors such as finance, mining, telecommunications, and energy.
A breakdown of sectoral contributions showed that financial and insurance activities emerged as the highest contributor to company income tax collections, accounting for 24.73 per cent of total revenue.
The mining and quarrying sector followed with 16.06 per cent, reflecting the continued strength of extractive industries as major drivers of government earnings.
The report highlighted significant disparities in sectoral performance across the economy.
On a quarter-on-quarter basis, water supply, sewage, waste management, and remediation activities recorded the highest growth rate at an impressive 485.71 per cent.
This was followed by activities of households as employers and undifferentiated goods and services-producing activities for own use, which recorded a growth of 197.04 per cent.
However, not all sectors shared in the growth momentum, with agriculture, forestry, and fishing recording one of the weakest performances during the period, while the construction sector posted a sharp contraction of 63.15 per cent, reflecting ongoing pressures in critical segments of the economy.
Despite recording the highest growth rate, the water supply and waste management sector contributed only 0.38 per cent to total company income tax revenue, underscoring its relatively small size within the broader economy.
Similarly, activities of households as employers and own-use production activities accounted for only 0.01 per cent of total collections, while extraterritorial organisations and bodies contributed 0.13 per cent.
Economists say the latest figures reflect a mixed outlook for the economy, where government revenue remains relatively strong but is increasingly concentrated in a handful of sectors.
The dominance of financial institutions and mining companies in tax remittances points to the resilience of those sectors, even as agriculture, construction, and other productive industries struggle with rising operational costs, infrastructure deficits, and economic uncertainties.
The decline in year-on-year tax collections is also expected to fuel debate about the pace of economic recovery and the need for policies that encourage business expansion, investment, and job creation.
Company Income Tax remains one of Nigeria’s most important non-oil revenue sources and plays a critical role in financing government expenditure, infrastructure development, and public services.