Manufacturers’ income tax surges by 414.2% to N221.97bn

Manufacturing companies in Nigeria have defied the odds by paying a total of N212.97 billion in income tax in the second quarter of 2024. This represents a whopping 414.12 percent increase from the previous quarter. Despite facing challenges such as forex scarcity, Naira depreciation, and energy crises, these companies managed to contribute significantly to the government’s revenue.

A recent report by the National Bureau of Statistics revealed that the manufacturing sector ranked second in terms of Company Income Tax (CIT) revenue contribution, accounting for 8.99 percent of the total amount generated. The finance and insurance sectors led the pack with 15.5 percent.

Financial analyst, Mr. David Adonri, attributes this surge in tax payment to the efficiency of revenue agencies and the improved performance of certain companies like Presco Plc and Okomu Oil Palm Plc. These companies, along with petroleum companies and banks, recorded higher tax payments due to increased prices of their products.

While some companies struggle due to import dependency and low demand elasticity, others have managed to thrive in the challenging business environment. Overall, the increase in tax collection reflects a positive trend in the manufacturing sector despite prevailing economic challenges.

Source: Vanguard News

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