The agricultural sector has emerged as the dominant force behind Nigeria’s remarkable growth in Company Income Tax (CIT) collections during the second quarter of 2024. According to the latest report from the National Bureau of Statistics (NBS), CIT in Q2 2024 reached a total of N2.47 trillion, reflecting a significant 150.83 percent increase from N984.61 billion in the first quarter of 2024.

A standout contributor to this growth was the agriculture, forestry, and fishing sector, which recorded a staggering 474.50 percent increase in tax contributions on a quarterly basis. This impressive growth rate underscores the sector’s expanding influence on the national economy, as it continues to play a pivotal role in revenue generation and overall economic development.

“Agriculture, forestry, and fishing recorded the highest growth rate at 474.50%, showcasing the sector’s increasing contribution to the national economy,” the report stated, emphasizing the sector’s accelerating momentum in recent years.

Other sectors that experienced substantial growth during the same period include the financial and insurance activities sector, which saw a 429.76 percent increase, and the manufacturing industry, which grew by 414.15 percent. These sectors continue to be critical drivers of the Nigerian economy, contributing to both job creation and economic diversification.

The report further revealed that local CIT payments amounted to N1.35 trillion in Q2 2024, while foreign CIT payments totaled N1.12 trillion. This balanced contribution from both local and foreign entities demonstrates the growing confidence in Nigeria’s economic landscape, despite challenges posed by inflation and global market fluctuations.

In terms of sectoral contributions, the financial and insurance activities sector contributed 15.53 percent of the total CIT revenue, followed by the manufacturing sector at 8.99 percent and the information and communication sector at 7.84 percent. These three sectors are widely recognized for their consistent performance and ability to drive growth in both the private and public sectors.

Despite these positive developments, not all sectors experienced growth in Q2 2024. The report highlighted that the activities of households as employers and undifferentiated goods- and services-producing activities for household use recorded the lowest growth rate, with a decline of -30.22 percent. This was followed by the activities of extraterritorial organizations and bodies, which posted a contraction of -15.67 percent.

Moreover, certain sectors contributed only marginally to the overall CIT revenue. The activities of households as employers recorded a 0.00 percent share of the total CIT, while water supply, sewerage, and waste management activities contributed just 0.02 percent. Similarly, extraterritorial organizations added only 0.03 percent, indicating significant disparities in sectoral tax contributions.

On a year-over-year basis, the CIT collections for Q2 2024 saw a 59.52 percent increase from N1.55 trillion in Q2 2023. This notable rise highlights the broader economic recovery and development in key industries, further signaling Nigeria’s resilience in the face of ongoing global economic challenges. The surge in tax collections also reflects improved compliance and the expansion of taxable activities within the country.