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Nigeria’s Company Income Tax (CIT) collections fell sharply in the fourth quarter of 2025, dropping to N1.49 trillion from N2.96 trillion in the preceding quarter.

This is according to the latest data from the National Bureau of Statistics (NBS). The decline represents a 49.81% quarter-on-quarter contraction, reflecting a slowdown in corporate tax inflows during the period.

The drop comes amid evolving macroeconomic conditions and possible seasonal adjustments in corporate earnings and remittances, highlighting short-term volatility in tax revenue generation.

The breakdown of Q4 2025 CIT collections shows a relatively balanced contribution from domestic and foreign sources.

Despite the steep quarterly decline, CIT collections rose 13.38% year-on-year compared to Q4 2024, suggesting resilience in Nigeria’s corporate tax base over the longer term.

Sectoral performance in Q4 2025 was mixed, with some industries recording strong growth while others saw significant contractions.

At the lower end of the spectrum, activities of households as employers contributed just 0.002%, while water supply, sewerage, and waste management accounted for 0.04%, and extraterritorial organisations added 0.17%.

In March, the federal government rolled out new presumptive tax rules for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to simplify compliance and provide a clearer pathway into the formal economy.

CIT performance in Q3 2025 was underpinned by contributions from both domestic and foreign sources.

Overall, the 6.55% quarter-on-quarter increase underscores steady growth in corporate earnings and tax compliance.