Nigeria Tax Remittance From Manufacturers Declines In Q1, 2024

Nigeria Tax Remittance From Manufacturers Declines In Q1, 2024. Nigeria has experienced a serious decrease in tax remittance from manufacturers in Q1, 2024. This is according to a recent report by the National Bureau of Statistics.

The low turnout is considered the lowest in three years, and the cause of this can be traced to the unfriendly operating environment which affected their financial performance.

According to the most recent Company Income Tax (CIT) report by the National Bureau of Statistics, the tax revenue from both local and international manufacturing companies in Nigeria dropped from ₦145.1 billion in Q1, 2023 to ₦43.2 billion in Q1, 2024. This is a 70.4% decrement.

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Nigeria Tax Remittance From Manufacturers Declines In Q1, 2024: More Revelations

Within a space of one year, some of the biggest manufacturing firms in the country experienced huge losses as their borrowing costs rose on the back of rising interest rates and an additional depreciation of the naira.

Speaking on the issue, Abiodun Kayode-Alli, tax senior manager at PwC, said that the current state of the economy has affected the tax contributions of manufacturers, adding that the tax collection in Q1 isn’t usually much because the majority of companies typically wait till June 30 to remit their taxes.

This is because they know that they have the grace of delaying their filing and payments till then.

According to a breakdown of the NBS report, the low tax turnout from manufacturers also affected the aggregate corporate tax (CIT) which fell from ₦1.13 trillion in the previous quarter to ₦984.61 billion in Q1.

In the previous month, the Federal Inland Revenue Service revealed that it generated a total of ₦3.94 trillion in tax revenue in Q1. The performance, however, fell short of its quarterly revenue target of ₦4.8 trillion.

There had been earlier reports that 7 out of 13 listed consumer goods companies posted a joint loss of ₦388.6 billion in Q1.

They include Nigerian Breweries Plc, Nestlé Nigeria Plc, Dangote Sugar Refinery Plc, Guinness Nigeria Plc, Cadbury Nigeria Plc, International Breweries Plc, and Champion Breweries Plc.

Three out of the remaining 6, which include BUA Cement, Lafarge Africa Plc and Nascon Allied Industries Plc reported a fall in their profit by 37.6%, 65.2%, and 24.9% respectively.

The rest include BUA Foods Plc, Unilever Nigeria Plc, and Dangote Cement Plc, which posted a joint profit of ₦171.9 billion, up from ₦152.6 billion.


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