- Of all the most flourishing companies in Nigeria, Dangote Cement plc has continued to be one of the biggest taxpayers.
Income taxes in Nigeria is on the rise as a review of Q3 2023 has shown that Dangote Cement Company has paid over $80 million in Income Taxes to the Nigerian Government for just the first 3 months of the year.
Looking at the company’s tax record over the years, it is sufficient to say that the cement giant has been one of the biggest contributors to Nigeria’s tax collections.
See below a rundown of Dangote’s remittance in recent times:
Q1 2023: Dangote Cement Company Pays Over $80 Million In Income Taxes In Nigeria
Even though the $81.1 million tax paid in Q1 2023 can be said to be enormous, it is considered to be a decline, as the figure was 26.6% lower compared to $90.15 million paid in the corresponding period in 2022 when its pre-tax earnings were over $330 million.
The decrease in tax can be blamed on a decline in revenue that was experienced due to the issue of cash scarcity that occurred earlier in the year.
Dangote Cement’s first quarter earnings for 2023 declined to $883.3 million from the amount of $897.3 million that was recorded in the same period last year.
This and other factors such as energy costs and operating expenses reduced the company’s pre-tax earnings from $397.5 million in Q1 2022 to $320.4 million in Q1 2023.
Despite the ups and downs, Dangote cement company was able to negotiate a 26% reduction in its income tax expense which aided in increasing its profit after tax to over $80 million, thereby increasing its assets from $5.66 billion to $5.86 billion.
H1 2022: Dangote Cement Leads 18 Other Companies In Tax Remittance
Back in 2022, a total of 18 companies operating in Nigeria and other African countries remitted ₦330.9 billion to tax agencies in the first half (H1), an increase of 35% from the ₦245.18 billion figure that was reported in the corresponding period in 2021.
According to the National Bureau of Statistics (NBS), a total of ₦532.48 billion was remitted as Corporate Income Tax for Q1 2022.
As posted on the Nigerian Exchange Limited (NGX), Dangote Cement Plc paid the highest amount of tax among others to governments where they operate.
The breakdown indicated that Dangote Cement gave an account of ₦92.79billion tax expenses in H1 2022.
This is an increase of 3.5% from the ₦89.6billion that was reported in H1 2021.
Q1 2021: Dangote Cement Remits More Tax Than 13 Banks Combined
Back in 2021, the Cement giant, Dangote Cement Plc, remitted a total amount of ₦40.36 billion as income tax between January and March.
Within that period, this amount was almost proportional to what 13 banks paid as tax combined.
According to the Nigerian Stock Exchange’s (NSE), ‘Company Income Tax Q1’2021, Dangote Cement Plc recorded a ₦332.65 billion revenue, out of which the income tax was remitted.
On the flip side, the 13 banks which include –Sterling Bank, Access Bank, GTBank, and Ecobank documented gross earnings of ₦1.23 trillion out of which ₦42.26 billion was remitted as taxable income.
Follow us on Twitter for more update
The information contained herein is general and is not intended, and should not be taken, as legal, accounting or tax advice provided by Taxmobile.Online Inc to the reader. This information remains strictly the opinion of Taxmobile.Online Inc.
The reader also is cautioned that this material may not apply to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of other tax factors if any action is to be contemplated. The reader should contact his or her Tax Advisers before taking any action based on this information.
All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Taxmobile.Online Inc.