The Federal Government of Nigeria received N392.7 billion in company income taxes from ten listed firms on the Nigerian Exchange in the first half of 2025, a 16.1 percent increase from N338.3 billion in the same period of 2024.
The analysis, based on Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income filed with the Nigerian Exchange Limited, shows that Dangote Cement Plc, Nestlé Nigeria Plc, Lafarge Africa Plc, BUA Cement Plc, International Breweries Plc, Julius Berger Plc, Nascon Allied Industries Plc, UAC of Nigeria Plc, Cadbury Nigeria Plc, and Dangote Sugar Refinery Plc made the remittances.
According to the Academy of Tax Law, income tax is a direct levy imposed on individuals, corporations, and entities within a jurisdiction.
Dangote Cement Plc topped the list with N209.6bn in tax payments, nearly double the N103.1bn it remitted in H1 2024. Lafarge Africa Plc followed with N67.1bn, a steep rise from N17.3bn a year earlier — a 288 percent surge linked to stronger cement sales and expanded operations.
Nestlé Nigeria Plc paid N37.8bn in taxes, down from N75.6bn in 2024, reflecting a 50 percent decline driven by accounting adjustments. BUA Cement Plc remitted N33.9bn, a 477 percent increase from N5.9bn in the same period last year.
International Breweries Plc reported N20.2bn, down 53 percent from N43.5bn, amid higher production costs and competitive pressures. Nascon Allied Industries Plc posted a 222 percent jump to N7.7bn, compared with N2.4bn last year.
Julius Berger Plc remitted N6.1bn, a 55 percent drop from N13.5bn, while UAC of Nigeria Plc paid N3.7bn, down from N5.4bn in 2024. Cadbury Nigeria Plc recorded N4.4bn, a modest 4.7 percent rise from N4.2bn. Dangote Sugar Refinery Plc’s payments plunged 96.8 percent to N2.2bn, compared with N67.4bn in the same period of 2024.
Commenting on the trend, Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, linked the higher tax remittances largely to inflationary pressures from the recent naira devaluation.
“It is purely the inflationary impact as a result of the devaluation of the naira. Generally, revenue has gone up in the country because of inflation. Because of that, we expect that might continue, and also the new tax rate will push it further,” Sanni said.
He added that while small firms benefit from tax reliefs at turnover thresholds of N12 million, large manufacturers bear the brunt of higher costs and are adjusting their selling prices.
Sanni stressed the importance of the manufacturing sector, comparing Nigeria’s challenges to global debates on industrial policy. “It is quite significant in the sense that manufacturing is the bedrock of the economy. That is what we are seeing Donald Trump fighting for today, because he is looking at stepping up production. If you produce locally, the company income tax will increase, but if you import, the tax will be in import levies,” he noted.
The economist warned, however, that inelastic supply constraints and weaker aggregate demand could undermine future revenues. He also highlighted the role of tariffs and trade policy, urging Nigeria to pursue an import substitution strategy.
“If we increase taxes on imports, it makes those goods coming to Nigeria more expensive. There will be a need for individuals to look for an import substitution strategy… If the government can project and work on infrastructure, then it will make sense for the economy,” he said.
The developments come as President Bola Tinubu recently signed four major tax reform bills — the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill — aimed at strengthening Nigeria’s fiscal framework and boosting federal government revenue.
