Company income tax falls to N1.37tn in Q1 2026, NBS reports

Nigeria’s company income tax (CIT) dropped to N1.37 trillion in the first quarter of 2026, according to the National Bureau of Statistics (NBS). The NBS reported that this represents a decline from the fourth quarter of 2025, though figures vary: one comparison cites a drop of 8.98 percent from N1.449 trillion, while another notes an 8.08 percent decrease from N1.49 trillion. Of the Q1 total, domestic CIT contributed N538.91 billion and foreign CIT payments accounted for N828.82 billion.

The decline matters because CIT is a major source of federal revenue, influencing funds available for infrastructure, salaries, and public services. A sustained drop could signal weaker corporate earnings, reduced tax compliance, or broader economic slowdown, potentially pressuring the government to meet its 2026 budget assumptions.

Readers should note the inconsistency in the reported baseline figures and percentages, which may reflect data revisions or differing calculation methods. Monitoring upcoming NBS releases, Federal Inland Revenue Service updates, and any policy responses will clarify whether this is a temporary fluctuation or a trend requiring adjustments in tax administration or economic policy.

With lower CIT collections, will the government rely more on other revenue streams such as VAT or customs duties, or introduce measures to boost corporate tax compliance to meet its fiscal targets?

SOURCE: https://dailypost.ng/2026/06/15/nigerias-company-income-tax-drops-to-n1-37tn-in-q1-2026-nbs/