Nigeria’s Company Income Tax Falls to ₦1.37 Trillion in Q1 2026 Amid Broad-Based Decline

Nigeria’s Company Income Tax (CIT) collections declined to ₦1.37 trillion in the first quarter (Q1) of 2026, according to the latest report released by the National Bureau of Statistics (NBS).

The report showed that CIT receipts fell by 8.08 percent quarter-on-quarter from ₦1.49 trillion recorded in the fourth quarter of 2025.

On a year-on-year basis, collections dropped sharply by 31.05 percent, highlighting weaker tax inflows compared to the corresponding period of 2025.

Of the total amount collected during the quarter, domestic Company Income Tax contributed ₦538.91 billion, while foreign Company Income Tax payments accounted for ₦828.82 billion, representing the larger share of total tax receipts.

Financial Services Lead Tax Contributions

Sectoral analysis showed that Financial and Insurance Activities remained the largest contributor to Company Income Tax revenue during the quarter with a 24.73 percent share of total collections.

Mining and Quarrying followed with 16.06 percent, while Manufacturing accounted for 13.82 percent of total CIT receipts.

Data contained in the report indicated that the financial sector generated ₦133.27 billion in CIT payments, while Mining and Quarrying contributed ₦86.55 billion and Manufacturing paid ₦74.48 billion during the quarter.

Information and Communication also posted a significant contribution of ₦63.62 billion, while Public Administration and Defence generated ₦41.99 billion in tax payments.

Water Supply Sector Records Strongest Growth

Despite the overall decline in collections, some sectors recorded exceptional quarter-on-quarter growth.

Water Supply, Sewerage, Waste Management and Remediation Activities posted the highest growth rate at 485.71 percent. Activities of Households as Employers and Undifferentiated Goods and Services Producing Activities for Own Use followed with a growth rate of 197.04 percent.

Conversely, Agriculture, Forestry and Fishing recorded the steepest decline with a contraction of 73.52 percent, while Construction fell by 63.15 percent during the period.

Foreign Tax Payments Dominate Collections

A notable feature of the report was the dominance of foreign tax payments in total CIT collections.

Foreign Company Income Tax payments contributed ₦828.82 billion, accounting for approximately 61 percent of total collections, while domestic tax receipts represented about 39 percent.

This highlights the significant role of multinational companies and foreign-sourced corporate earnings in Nigeria’s tax revenue profile.

Revenue Outlook

The decline in Company Income Tax receipts may reflect weaker corporate profitability in certain sectors, changing tax dynamics, or timing differences in tax remittances.

However, the strong performance of the financial services, mining, manufacturing, and telecommunications sectors suggests that key segments of the economy remain resilient.

With Company Income Tax serving as one of the Federal Government’s major non-oil revenue sources, future collections will be closely monitored as policymakers seek to strengthen revenue generation amid ongoing fiscal pressures.

The latest data indicates that while Nigeria’s corporate sector continues to generate substantial tax revenue, overall collections weakened in the first quarter of 2026 compared to both the preceding quarter and the same period last year.