The agricultural sector has emerged as the frontrunner in Company Income Tax (CIT) growth in Nigeria for the second quarter of 2024, recording a staggering 474.50% increase on a quarter-on-quarter basis. This is according to the latest report from the National Bureau of Statistics (NBS), released on Monday.
Overall, CIT collections for Q2 2024 reached an impressive N2.47 trillion, representing a 150.83% increase from the N984.61 billion recorded in Q1 2024. Of this total, N1.35 trillion came from local payments, while N1.12 trillion was attributed to foreign CIT payments.
“The agriculture, forestry, and fishing sector recorded the highest growth rate at 474.50%, underscoring the sector’s increasing contribution to the national economy,” the NBS report highlighted.
The financial and insurance activities sector followed closely, with a 429.76% growth rate, while the manufacturing sector expanded by 414.15% during the same period.
Despite the overall positive performance, certain sectors experienced declines in Q2 2024. The report noted that “the activities of households as employers, and undifferentiated goods- and services-producing activities for household use, saw the lowest growth rate at -30.22%, followed by activities of extraterritorial organizations and bodies at -15.67%.”
In terms of sectoral contributions to total CIT revenue, the financial and insurance activities sector led the way with a 15.53% share, followed by manufacturing at 8.99%, and information and communication at 7.84%.
Conversely, some sectors contributed minimally to the overall CIT revenue. “The activities of households as employers recorded a 0.00% share, while water supply, sewerage, and waste management activities contributed just 0.02%, and extraterritorial organizations added 0.03%,” according to the NBS report.
On a year-on-year basis, CIT collections for Q2 2024 showed a 59.52% increase from the N1.55 trillion recorded in Q2 2023, reflecting broader economic recovery and growth across key sectors.
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