Nigeria’s tax earnings decreases by 26% in Q4, 2021
The Nigerian Bureau of Statistics has stated that Nigeria’s earnings from Company Income Tax (CIT) for Q4 2021 stood at N347.81 billion, a decline by 26.39% on a quarter-on-quarter basis from N472.52 billion in Q3 2021. This revelation was part of the bureau’s report for February 2022.
Giving a breakdown of the income, the bureau indicated that local payments recorded were N258.85 billion, while Foreign CIT Payment contributed N88.96 billion.
According to the report, the decrease was the result of decreases in collections in some critical sectors of the economy. These include; administrative and support service activities (-72.15%); agriculture, forestry and fishing (-34.52%); arts, entertainment and recreation (-25.31%); education (-1.61%); financial and insurance activities (-5.52%); information and communication (-4.33%); manufacturing (-23.21%); and mining and quarrying (-7.56%).
Irrespective of the above, positive growth was recorded in some other sectors.
“On a quarter-on-quarter basis, positive growths were recorded in accommodation and food service activities (116.01%); activities of extraterritorial organizations and bodies (128.92%); activities of households as employers, undifferentiated goods and services-producing activities of households for own use (563.56%); construction(33.32%); electricity, gas, steam, and air conditioning supply (84.68%); human health and social work activities (31.47%); other service activities (37.28%); professional, scientific and technical activities (51.47%); public administration and defense, compulsory social security (29.46%); real estate activities (17.99%); transportation and storage (2.04%); water supply, sewerage, waste management and remediation activities (26.08%); and wholesale and retail trade, repair of motor vehicles and motorcycles (13.91%)”, the report stated.
In terms of sectoral contributions, the top three largest shares in Q4 2021 were information and communication (N51.05 billion) with 19.72%; manufacturing (N45.09 billion) with 17.42%; and financial and insurance activities (N31.06 billion) with 12.00%. Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use (N189.45 million) with 0.07%; water supply, sewerage, waste management and remediation activities (N328.58 million) with 0.13%; and activities of extraterritorial organizations and bodies (N447.01 million) with 0.17% were top three lowest shares in Q4 2021.
However, on a year-on-year basis, CIT collections in Q4 2021 increased by 17.61% from Q4 2020.
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