The National Bureau of Statistics (NBS) says the federal government collected a total of N984 billion as company income tax (CIT) in the first quarter (Q1) of 2024.

The (NBS) disclosed this in its latest CIT report for the first three months of the year.

According to TheCable, the CIT is a tax on the profits of registered local and foreign companies operating in Nigeria and serves as one of the government’s revenue sources.

The accrual decreased by 12.87 percent from N1.13 trillion earned in the previous quarter (Q4 2023).

Currently, the tax is charged at the rate of 30 percent for companies with more than N100 million in turnover, and 20 percent for companies with a turnover ranging between N25 million and N100 million.

According to the NBS report, local payments received were N386 billion, while foreign CIT payments contributed N598 billion in Q1 2024.

“On a quarter-on-quarter basis, Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate with 330.42%, followed by administrative and support service activities with 33.18%,” the NBS said.

“On the other hand, activities of Manufacturing had the lowest growth rate with –70.24%, followed by electricity, gas, steam and air conditioning supply with –69.14%.

“In terms of sectoral contributions, the top three largest shares in Q1 2024 were mining and quarrying with 20.94%; financial and insurance activities with 18.73%; and information and communication with 12.56%.

“Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%, followed by water supply, sewerage, waste management, and remediation activities with 0.07% and Activities of extraterritorial organisations and bodies with 0.24%.”

On a year-on-year basis, the NBS said CIT collections in Q1 2024 increased by 109.93 percent from Q1 2023.

On June 3, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, announced that the federal government has approved the exemption of small businesses earning N25 million and less from withholding tax.