Income tax collections tell a story of Nigeria’s corporate recovery.
In Q2 2025, companies paid ₦2.78 trillion, marking a 40% rise from the previous quarter.
Corporate Growth Drives Tax Revenue
Domestic firms contributed ₦2.31 trillion, while foreign companies added ₦469.36 billion, strengthening the government’s revenue base.
Financial Sector Leads The Surge
The financial and insurance sector drove the growth, expanding 772% as banks and fintechs posted strong profits.
Following this, wholesale and retail trade, alongside motor vehicle repair services, rose 538%, signalling a rebound in traditional sectors.
Even households employing staff increased payments by over 500%, though their overall contribution remained minimal.
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Mixed Performance Across Sectors
Not all sectors performed well.
Extraterritorial organisations fell 45%, while education, defence, and public administration dropped sharply, exposing persistent challenges in government-funded institutions.
Financial and insurance activities contributed 44% of total revenue, manufacturing added 15.6%, and mining accounted for 9.2%.
Year-on-year, income tax rose 12.7%, while agriculture, forestry, fishing, and manufacturing showed the highest quarter-on-quarter growth, highlighting pockets of strong performance.
Overall, private enterprises drive growth, while government-funded sectors struggle with structural weaknesses, underscoring the mixed landscape of Nigeria’s economy.
