NBS Report Reveals Sharp Decline in Company Income Tax Revenue for Q4 2025
The National Bureau of Statistics (NBS) has released a concerning report detailing a significant drop in Company Income Tax (CIT) revenue for the fourth quarter of 2025. According to the data, CIT collections stood at N1.49 trillion in Q4 2025, representing a dramatic decrease of 49.81 per cent compared to the N2.96 trillion recorded in the previous quarter.
Value-Added Tax Also Experiences Downward Trend
In a similar vein, Value-Added Tax (VAT) revenue also saw a decline during the same period. VAT collections dropped from N2.28 trillion in Q3 2025 to N2.19 trillion in Q4, marking a 3.78 per cent decrease on a quarter-on-quarter basis. This downward trend highlights the broader economic challenges facing the nation.
Year-on-Year Growth Provides Some Silver Lining
Despite the quarterly declines, the report does offer a glimmer of hope when viewed on a year-on-year basis. CIT collections in Q4 2025 increased by 13.38 per cent compared to the same period in the previous year. Similarly, VAT collections rose by 12.84 per cent year-on-year, indicating some resilience in the tax system over the longer term.
Detailed Breakdown of CIT and VAT Collections
The NBS report provides a detailed breakdown of the tax revenues. For CIT, domestic collections amounted to N819.83 billion, while foreign CIT payments stood at N668.21 billion. On the VAT front, local payments were N1.16 trillion, with foreign VAT payments at N503.13 billion and import VAT contributions totaling N535.73 billion.
Sectoral Performance and Economic Impact
The report underscores the impact of heightened economic hardship, which has drained citizens of purchasing power. In terms of sectoral performance, activities of extraterritorial organisations and bodies recorded the highest growth rate at 75.15 per cent, followed by education at 54.2 per cent and real estate at 27.25 per cent.
Conversely, accommodation and food service activities suffered the most, with a growth rate of -67.11 per cent. This was closely followed by activities of households as employers, which dropped by 63.49 per cent, and mining and quarrying, which declined by 49.63 per cent.
Leading and Lagging Sectors in Tax Contributions
In terms of sectoral shares, financial and insurance activities led the way with 18.74 per cent, followed by manufacturing at 17.3 per cent and mining and quarrying at 15.04 per cent. On the other end of the spectrum, activities of households as employers recorded the least share at 0.002 per cent, with water supply and related activities at 0.04 per cent and activities of extraterritorial organisations at 0.17 per cent.
The NBS data paints a clear picture of the economic strains affecting various sectors, with the report serving as a critical indicator for policymakers and stakeholders as they navigate the challenging fiscal landscape.
