The Federal Government (FG) is experiencing a substantial increase in its finances, with revenue from Value Added Tax (VAT) and Company Income Tax (CIT) rising by 85% year-on-year (YoY) to N6.44 trillion in the first half of 2024 (H1’24). This marks a notable increase from N3.48 trillion in the same period last year (H1’23).
Additionally, leading commercial banks in Nigeria contributed significantly to this revenue, paying N579.38 billion in income tax in H1’24, representing a remarkable 109.6% YoY increase from N276.39 billion in H1’23.
Breakdown of Bank Contributions
Data from the financial statements of banks shows that Zenith Bank led the contributions with N149.03 billion, followed by:
- Ecobank: N132.5 billion
- Guaranty Trust Bank: N98.2 billion
- Access Bank: N67.6 billion
- United Bank for Africa: N51.06 billion
- Stanbic IBTC: N30.64 billion
- First Bank of Nigeria: N21.4 billion
- Fidelity Bank: N19.6 billion
- First City Monument Bank: N4.3 billion
- Wema Bank: N3.97 billion
- Sterling Bank: N1.08 billion
Revenue Highlights
The National Bureau of Statistics (NBS) reported that revenue from VAT soared by 100.6% to N2.99 trillion in H1’24, up from N1.49 trillion in H1’23. Similarly, CIT revenue increased by 73.3% to N3.45 trillion in H1’24, compared to N1.99 trillion in H1’23.
In May, the Accountant-General of the Federation, Oluwatoyin Madein, noted at the 26th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria that tax revenue is currently the highest income source for the country. He highlighted that the Federation Accounts Allocation Committee eagerly anticipates monthly figures from the Federal Inland Revenue Service to allocate funds to the three tiers of government.
This significant boost in tax revenue underscores the government’s efforts to enhance its financial standing and manage economic challenges effectively.
