Tax revenue from manufacturers have dropped drastically by 70.24 percent, quarter-on-quarter, to ₦43.2 billion in the first quarter of 2024 from ₦145.1 billion recorded in the previous quarter.
This is in apparent reflection of the harsh operating environment for the manufacturing sector in Nigeria over the past year, caused by fuel subsidy removal, naira devaluation and increase in electricity tariff.
This is contained in the company income tax Q1 2024 report by the National Bureau of Statistics (NBS) on the tax revenue from both local and foreign manufacturing companies.
“On the aggregate, CIT for Q1 2024 was reported at ₦984.61 billion, indicating a growth rate of -12.87 percent on a QoQ basis from 1.13 trillion in Q4 2023. Local payments received were ₦386.49 billion, while Foreign CIT payments contributed ₦598.13 billion in Q1 2024.
“On a QoQ basis, the activities of Manufacturing had the lowest growth rate with -70.24 percent, followed by Electricity, gas, steam and air conditioning supply with -69.14 percent,” the report states.
The report also indicated a decline of 31.4 percent year-on-year in tax payments by manufacturers compared with ₦62.9 billion recorded in Q1 of 2023.
CIT, also known as corporate tax, is a levy imposed by the government on the income of a company.
The rate is hinged on zero percent for companies with gross turnover of ₦25 million or less, 20 percent for companies with gross turnover greater than ₦25 million and less than ₦100 million, and 30 per cent for large companies above ₦100 million.
