By Boluwatife Oshadiya | June 16, 2026
Key Points
- Nigeria’s Company Income Tax collections declined to ₦1.37 trillion in Q1 2026, down 8.08% from Q4 2025
- Financial and insurance activities remained the largest contributor, accounting for 24.73% of total domestic CIT collections
- Foreign company tax payments contributed ₦828.82 billion, representing more than 60% of total CIT revenue
Main Story
Nigeria’s Company Income Tax (CIT) collections fell to ₦1.367 trillion in the first quarter of 2026, reflecting weaker corporate tax receipts amid continued economic pressures on businesses, according to the latest report released by the National Bureau of Statistics (NBS).
The figure represents an 8.08% decline from the ₦1.49 trillion recorded in the fourth quarter of 2025 and a steeper 31.05% drop compared with the corresponding period of 2025.
According to the NBS report, domestic company income tax payments contributed ₦538.91 billion, while foreign company tax payments accounted for ₦828.82 billion, underscoring the continued dominance of multinational and foreign-linked corporate taxpayers in Nigeria’s tax revenue profile.
Sectoral analysis showed that Financial and Insurance Activities remained the largest contributor to domestic CIT collections, accounting for 24.73% or ₦133.27 billion. Mining and Quarrying followed with ₦86.55 billion, representing 16.06%, while Manufacturing contributed ₦74.48 billion or 13.82%. Information and Communication activities generated ₦63.62 billion in tax payments during the quarter.
Among sectors posting the strongest quarter-on-quarter growth, Water Supply, Sewerage, Waste Management and Remediation Activities recorded a 485.71% increase, while Activities of Households as Employers grew by 197.04%. Conversely, Agriculture, Forestry and Fishing declined by 73.52%, while Construction recorded a 63.15% contraction in tax contributions.
The latest figures come despite strong profitability reported by several major Nigerian banks during the first quarter of 2026, suggesting that broader economic challenges may be weighing on tax performance across other sectors of the economy.
What’s Being Said
“The nation’s aggregate Company Income Tax for Q1 2026 stood at ₦1.37 trillion, representing a decrease of 8.08 per cent on a quarter-on-quarter basis from ₦1.49 trillion recorded in Q4 2025,” the National Bureau of Statistics stated in its latest CIT report.
Independent analysts have linked the decline to the challenging operating environment faced by businesses, including high borrowing costs, inflationary pressures and weaker consumer spending, which continue to affect profitability across several sectors.
What’s Next
- Investors and policymakers will closely monitor second-quarter tax data for signs of a recovery in corporate earnings and business activity.
- The Federal Government is expected to intensify efforts to boost non-oil revenue collection as part of its fiscal sustainability agenda.
- Upcoming NBS reports on VAT and sectoral economic performance will provide further insight into the health of Nigeria’s business environment and tax base.
Bottom Line
The Bottom Line: Nigeria’s first-quarter CIT performance highlights growing pressure on corporate profitability despite strong earnings from a handful of large sectors. The continued dominance of foreign tax payments and the sharp declines in agriculture and construction suggest that economic growth remains uneven, posing challenges for the government’s drive to expand non-oil revenue.
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