By Yinka Kolawole
The Company Income Tax CIT) generated in Nigeria decreased by 28.91 percent, quarter-on-quater (QoQ), to N295.72 billion in the fourth quarter of 2020 (Q4’20) from N416.01 billion in Q3’20.
Disclosing this in its report on the sectoral distribution of CIT for Q4’20 released yesterday, the National Bureau of Statistics (NBS) further noted that the N295.72 billion CIT generated in Q4’20 represented a decrease of 18.31 percent year-on-year (YoY) compared to N362.01 billion generated in Q4 2019.
The Bureau stated: “Sectoral distribution of Company Income Tax data for Q4 2020 reflected that the sum of N295.72 billion was generated as CIT in Q4 2020 as against N416.01 billion generated in Q3 2020 and N362.01 billion generated in Q4 2019 representing -28.91% decrease Quarter-on-Quarter and -18.31% decrease Year-on-Year.”
A breakdown of CIT generated by various sectors showed that Professional Services including Telecoms generated the highest amount of N32.17 billion followed by Other Manufacturing which generated N25.64 billion and, Commercial and Trading which generated N19.41 billion.
According to NBS, Textile and Garment industry generated the least, closely followed by Mining and Local Government Councils with N104.37 million, N136.99 million, and N298.73 million generated respectively.
“Out of the total amount generated in Q4 2020, N162.00 billion was generated as CIT locally while N63.52 billion was generated foreign CIT payment. “The balance of N70.20 billion was generated as CIT from other payments,” the report added.