Nigeria’s Agricultural Sector Drives 474.50% Surge in Company Income Tax, Overall CIT Soars by 150.83% in Q2 2024
In the second quarter of 2024, Nigeria’s agricultural sector drove a substantial increase in Company Income Tax (CIT), soaring by 474.50% compared to the previous quarter. This surge was highlighted in the latest report from the National Bureau of Statistics released on Monday.
Overall, CIT for Q2 2024 reached ₦2.47 trillion, a remarkable 150.83% increase from ₦984.61 billion in Q1 2024. Local CIT payments amounted to ₦1.35 trillion, while foreign CIT payments totaled ₦1.12 trillion for the period.
The report highlighted that agriculture, forestry, and fishing experienced the highest growth rate at 474.50%, underscoring the sector’s expanding role in the national economy.
Following the agriculture, forestry, and fishing sector, the financial and insurance activities sector grew by 429.76%, while the manufacturing sector expanded by 414.15%. Conversely, some sectors faced difficulties in Q2 2024. The report noted that “households as employers and undifferentiated goods- and services-producing activities for household use” saw the lowest growth rate at -30.22%, with “extraterritorial organizations and bodies” experiencing a -15.67% decline.
In terms of sectoral contributions to total CIT revenue, the financial and insurance activities sector led with 15.53%, followed by manufacturing at 8.99%, and information and communication at 7.84%. Conversely, some sectors showed minimal contributions: “households as employers” had a 0.00% share, water supply and waste management contributed 0.02%, and extraterritorial organizations added 0.03%, according to the NBS report. Year-on-year, CIT collections for Q2 2024 rose by 59.52% from ₦1.55 trillion in Q2 2023, reflecting broader economic recovery and growth across key sectors.
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