Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 36)

According to the National Bureau of Statistics (NBS), Company Income Tax (CIT) revenue increased in Q2 2022.1 CIT revenue was N714.40 billion in Q2 2022, an increase of 29.53 percent on a quarter-on-quarter basis from N551.53 billion recorded in Q1 2022. On a year-on-year basis, CIT collections in Q2 2022 increased by 51.34 percent from Q2 2021. Local payments amounted to N634.01 billion (88.8 percent), while Foreign CIT payments contributed N80.39 billion (11.3 percent) in Q2 2022. The CIT revenue from local payments relative to foreign sources shows that local organisations remit more CIT payments than foreign organisations. Regarding local CIT revenues, manufacturing had the highest contribution in the period under review with 27.6 percent, followed by information & communication with 24.6 percent, and financial and communication with 15 percent. The rising CIT revenue is a positive development, as it contributes to non-oil revenue, which will help move the country’s dependence on oil revenue as the mainstay of the economy. Furthermore, this increase in CIT revenue can partly be attributed to the continuous utilisation of the recently implemented TaxPro Max (digital tax payment platform), a digital tool Federal Inland Revenue Services (FIRS) developed to enhance the digitalisation of filing of taxes and transaction convenience. Hence, the coverage and awareness of the platform need to be strengthened, as digitalisation of tax administration is key to efficient and effective tax collection, as it is more convenient and transparent and makes monitoring easier

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