A sum total of N1.409 trillion was earned by the Federal Government from Company Income Tax in 2020. This is according to a report released by the National Bureau of Statistics on the sectoral distribution of company income tax data.
According to the report, “Sectoral distribution of Company Income Tax data for Q4 2020 reflected that the sum of N295.72bn was generated as CIT in Q4 2020 as against N416.01bn generated in Q3 2020 and N362.01bn generated in Q4 2019 representing -28.91% decrease Quarter-on-Quarter and -18.31% decrease Year-on-Year.
“Professional Services including Telecoms generated the highest amount of CIT with N32.17bn generated and closely followed by Other Manufacturing generating N25.64bn, Commercial and Trading generating N19.41bn while Textile and Garment industry generated the least and closely followed by Mining and Local Government Councils with N104.37m, N136.99m, and N298.73m generated respectively.
“Out of the total amount generated in Q4 2020, N162.00bn was generated as CIT locally while N63.52bn was generated foreign CIT payment. The balance of N70.20bn was generated as CIT from other payments.”
While the country had N295.6bn in the first quarter, its earnings increased to N402 bn in the second quarter and N416bn in the third quarter. There was however a significant drop to N295.7 bn in the fourth quarter to total the sum of N1.409 trillion generated for the year.