Nigeria's Power Sector Tax Contribution Declines in 2025

According to data released by the National Bureau of Statistics, Nigeria's power sector contributed N62.12 billion in Company Income Tax for the year 2025. This figure represents a decline from the N77.97 billion recorded in 2024, indicating a year-on-year contraction in tax contributions from the energy supply segment.

The latest data highlights the weakened performance of the sector despite the broader resilience of Nigeria's corporate tax base. A quarterly breakdown shows significant fluctuations in tax contributions throughout the year, reflecting operational and macroeconomic pressures affecting companies in the sector.

Notably, the data reveals a decline in the latter half of the year, with domestic Company Income Tax accounting for N819.83 billion and foreign contributions at N668.21 billion. The performance of the electricity and gas sector is amid ongoing structural economic challenges within Nigeria's energy value chain, which continue to affect profit tax remittances.

Recent fiscal reforms by the federal government are expected to reshape Nigeria's tax landscape and improve revenue generation.