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Agricultural Sector Drives 474% Surge in Company Income Tax for Q2 2024

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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.

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Telecom Operators Reject NLC’s Demand for Tariff Reduction, Justify 50% Hike

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By Emmanuel Ogbodo

Nigeria’s Mobile Network Operators (MNOs) have rejected calls from the Nigeria Labour Congress (NLC) to negotiate a reduction in the recent 50% tariff increase, insisting the hike is necessary for the industry’s sustainability amid rising operational costs.

The NLC, opposing the adjustment, has demanded a rollback to 5% and threatened a nationwide protest on Tuesday, February 4, if its demands are not met.

The union described the increase as “insensitive and unjustifiable,” warning it would further strain Nigerian consumers.

At a weekend forum in Lagos, representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and major telecom firms, including MTN Nigeria, Airtel Nigeria, and 9mobile, defended the hike.

ALTON Chairman Gbenga Adebayo likened the increase to a “lifeline” for the industry, arguing that anything lower would cripple operations.

MTN Nigeria’s Chief Corporate Services & Sustainability Officer, Tobechukwu Okigbo, clarified that operators do not engage directly with the NLC, as ALTON manages industry-wide negotiations.

Airtel Nigeria’s Director of Corporate Communications and CSR, Femi Adeniran, added that discussions with labour unions fall under the purview of government agencies and ALTON.

The Nigerian Communications Commission (NCC), which approved the tariff adjustment on January 20, 2025, defended the move, citing inflation, foreign exchange volatility, and rising energy costs.

The commission emphasized that the decision aligns with its mandate under the Nigerian Communications Act, 2003, to ensure telecom sector viability.

Despite these justifications, the NLC remains firm in its opposition. Union President Joe Ajaero reiterated the demand for a significant reduction, warning of nationwide protests if the hike is not reversed.

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Dangote Refinery Reduces Petrol Price to N890 Per Litre

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By Alexis Uchendu

Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N950 to N890 per litre, effective February 1, 2025.

The company attributed the price adjustment to a favorable shift in global energy markets and a decline in international crude oil prices.

This follows a previous price hike on January 19, driven by rising crude costs.

Dangote Refinery expressed optimism that the price cut will lower fuel costs nationwide, ease the cost of living, and positively impact key economic sectors.

The company also urged fuel marketers to reflect the reduction at retail stations, ensuring consumers benefit from the adjustment as part of broader economic recovery efforts led by President Bola Ahmed Tinubu.

Reaffirming its commitment to Nigeria’s self-sufficiency in refined petroleum products, the refinery pledged to strengthen the country’s position as a leading oil export hub in Africa.

 

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Naira Gains Against Dollar Amid CBN Reforms

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By Adenike Lawal

The Naira appreciated by 0.78% at the official market on Wednesday, trading at N1,510.72 per dollar, an N11.96 gain from the previous day’s rate of N1,522.68, according to FMDQ Securities Exchange data.

Since December 2024, the Naira has remained relatively stable, largely due to ongoing reforms by the Central Bank of Nigeria (CBN).

On Tuesday, the apex bank introduced additional measures, including a waiver on the 2025 annual license renewal fee for Bureau De Change (BDC), operators and the launch of the Nigeria Foreign Exchange (FX), Code to enhance transparency in forex transactions.

Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), praised the CBN’s initiatives, urging continued support for policies that strengthen the local currency.

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