Nigeria's Q4 2025 Company Income Tax Drops 49.8%

In the fourth quarter of 2025, Nigeria's company income tax (CIT) collections experienced a significant decline of 49.8%, falling from N2.96 trillion in the previous quarter to N1.49 trillion, according to the latest data from the National Bureau of Statistics (NBS). This decline reflects a slowdown in corporate tax inflow during the period, attributed to evolving macroeconomic conditions and potential seasonal adjustments in corporate earnings.

Despite the steep quarterly decline, CIT collections rose by 13.38% year-on-year when compared to Q4 2024, suggesting a resilient corporate tax base in the long term. The performance in Q4 2025 varied across different industries, with some sectors recording strong growth while others faced significant contraction.

Notably, household employment contributed just 0.002%, while water supply, sewage, and waste management accounted for 0.04%. The federal government aims to simplify compliance and provide clearer pathways for the formal economy, as evidenced by the overall 6.55% quarter-on-quarter increase in corporate earnings tax compliance in Q3 2025.