MON JUNE 15 2026-theGBJournal| Nigeria’s Company Income Tax (CIT) collections declined to N1.37 trillion in the first quarter of 2026, reflecting mounting pressure on corporate profitability despite continued strength in key sectors of the economy.
Data released by the National Bureau of Statistics (NBS), sourced from the Nigeria Revenue Service (NRS), showed that CIT receipts fell 8.08% from N1.49 trillion recorded in the fourth quarter of 2025.
The decline was even more pronounced on an annual basis, with collections dropping 31.05% compared with the corresponding period of 2025, underscoring the impact of weaker business activity, sector-specific challenges and a tougher operating environment.
Foreign companies remained the largest contributors to tax receipts during the quarter, accounting for N828.82 billion, or more than 60% of total CIT collections.
Domestic companies contributed N538.91 billion, highlighting the continued importance of multinational firms and foreign-linked enterprises to Nigeria’s tax base.
Sectoral performance revealed significant disparities across the economy. Water supply, sewerage, waste management and remediation activities posted the strongest quarter-on-quarter growth in tax contributions, surging 485.71%, while activities of households as employers and household production for own use expanded by 197.04%.
In contrast, agriculture, forestry and fishing recorded the sharpest contraction, with tax collections plunging 73.52%, followed by the construction sector, which declined 63.15%.
Financial and insurance activities retained their position as the largest source of corporate tax revenue, contributing 24.73% of total collections during the quarter.
Mining and quarrying followed with a 16.06% share, while manufacturing accounted for 13.82%, reinforcing the dominance of the financial, extractive and industrial sectors in Nigeria’s corporate tax landscape.
At the opposite end of the spectrum, household employer activities and own-use production contributed just 0.01% of total CIT receipts, making them the smallest contributors.
Activities of extra-territorial organizations and bodies accounted for 0.13%, while water supply, sewerage, waste management and remediation activities represented 0.38% despite recording the fastest growth rate during the period.
The latest figures suggest that while a handful of sectors continue to generate substantial tax revenues, broader corporate tax performance remains under pressure, reflecting uneven economic recovery and persistent challenges facing businesses across several industries.
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