Nigeria's Company Income Tax (CIT) collections experienced a sharp decline in the fourth quarter of 2025, falling to N1.49 trillion from N2.96 trillion in the preceding quarter. This represents a 49.81% quarter-on-quarter contraction, according to data from the National Bureau of Statistics (NBS).
The drop reflects a slowdown in corporate tax inflows during the period, influenced by evolving macroeconomic conditions and potential seasonal adjustments in corporate earnings and remittances. This highlights short-term volatility in tax revenue generation.
Despite the steep quarterly decrease, CIT collections showed year-on-year resilience, rising by 13.38% compared to Q4 2024. This suggests a stable long-term trend in Nigeria’s corporate tax base.
The breakdown of Q4 2025 CIT collections indicates a relatively balanced contribution from domestic and foreign sources. Domestic Company Income Tax accounted for N819.83 billion, while Foreign CIT payments contributed N668.21 billion.
Sectoral performance in Q4 2025 was varied. Activities of extraterritorial organisations and bodies posted the highest growth at 75.15%, followed by education at 54.20%, and real estate at 27.25%. Sectors experiencing steep declines included accommodation and food services (-67.11%), household employment (-63.49%), and mining and quarrying (-49.63%).
In terms of contribution to total CIT revenue, financial and insurance activities led with 18.74%, followed by manufacturing at 17.30% and mining and quarrying at 15.04%. Activities of households as employers contributed a minimal 0.002%, while water supply, sewerage, and waste management accounted for 0.04%, and extraterritorial organisations added 0.17%.
Separately, Nigeria’s Value Added Tax (VAT) collections stood at N2.19 trillion in the fourth quarter of 2025. This figure represents a 3.78% decline from the N2.28 trillion recorded in the third quarter of 2025.
However, the Q4 2025 VAT collections show a 12.84% year-on-year increase, demonstrating continued growth in taxable economic activities. The NBS data highlights a resilient revenue performance, suggesting improved tax compliance and gradual expansion of the tax base over time, despite short-term fluctuations in consumption.
Local VAT payments accounted for N1.16 trillion, representing the largest share of the Q4 2025 VAT revenue. Foreign VAT contributions stood at N503.13 billion, and import VAT generated N535.73 billion, reflecting revenue diversity across domestic and international transactions.
Sectoral performance in VAT collections was also mixed. Water supply, sewerage, waste management, and remediation activities posted the highest quarter-on-quarter growth at 142%. Real estate activities grew 62.16%, while household-related economic activities rose 54.36%. Conversely, administrative and support services declined by 23.33%, activities of extraterritorial organisations fell 15.66%, and agriculture, forestry, and fishing dropped 12.01%.
Manufacturing remained the leading sector for VAT contribution, accounting for 25.23% of the total. Information and communication contributed 18.89%, and mining and quarrying added 14.50%. Household employer activities made a negligible contribution of 0.005 percent, while extraterritorial organisations and water supply-related activities contributed 0.02% and 0.07%, respectively.
