The NBS report shows that CIT payments have declined in Q4 2022 compared to the previous quarter, indicating a negative growth rate of 6.95%. This could be due to various factors such as lower corporate profits or economic slowdown resulting from the instability of the economy on businesses.
This is according to the NBS company income tax Statistics Report for Q4 2022.
Local payments received were N353.90 billion, while Foreign CIT Payment contributed N399.98 billion in Q4 2022. On a quarter-on-quarter basis, the Water supply, sewerage, waste management and remediation activities recorded the highest growth rate with 57.40%, followed by Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 45.19%.
On the other hand, Information and communication activities had the lowest growth rate with – 65.75%, followed by Arts, entertainment and recreation activities with -64.09%.
In terms of sectoral contributions, the top three largest shares in Q4 2022 were Manufacturing with 31.20%; Financial & insurance activities with 12.96% and Information and communication activities with 12.77%.
Conversely, the Activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the least share with 0.01%, followed by Water supply, sewerage, waste management, and remediation activities with 0.12%; and Activities of extraterritorial organizations and bodies with 0.14%. However, on a year-on-year basis, CIT collections in Q4 2022 increased by 116.75% from Q4 2021.
RateCaptain analyst believes that while there was a decline in Company Income Tax (CIT) payments made during Quarter 4 of 2022 , this does not necessarily mean that Nigerian businesses are doing badly financialy. It can simply indicate how much companies were able to pay based on their performance during this period . The Manufacturing sector still remains one of Nigeria’s top contributors towards company income taxes paid into public funds , showing its importance even amidst difficult economic conditions.
