Revenue - Intelpoint

Non-oil company income tax and two other sources accounted for over 70% of Nigeria's tax revenue in 2024

Company Income Tax (Non-Oil) emerged as the largest contributor, accounting for over 30% of total tax revenue.
NCS-Import VAT followed closely, contributing 23.63%, emphasising the significance of import-related taxes to Nigeria's revenue.
Traditional oil-based taxes such as Petroleum Profit Tax/Hydrocarbon Tax and CIT (Oil & Gas) jointly contributed over 26%, showing that oil remains a vital but declining pillar.
Newer tax streams like the Electronic Money Transfer Levy and NASENI (National Agency for Science and Engineering Infrastructure) funding have emerged, but still make up less than 2% of total revenue.
Minor tax categories like Capital Gains Tax, NITDEF (National Information Technology Development Fund), and NPTFL (Nigeria Police Trust Fund) had negligible impact, each contributing less than 0.5%

Total FAAC revenue shared in Nigeria consistently grew year-on-year from February to June 2025, with increases ranging from 39% to 49%

Nigeria’s FAAC revenue increased 49% YoY in March 2025 (₦1.68T vs ₦1.12T in March 2024).
February 2025 saw a 48% increase YoY (₦1.70T vs ₦1.15T in February 2024).
April 2025 revenue rose by 41% YoY, moving from ₦1.12T in April 2024 to ₦1.58T.
January 2025 showed no YoY change, recording ₦1.42T in both 2024 and 2025.
The consistent growth in H1 2025 FAAC revenues signals improved government revenue mobilisation, better oil/non-oil collections, and higher capacity for states to meet obligations.

Nigeria experienced substantial year-on-year declines in exchange rate gain revenue from April to June 2025, with decreases of 90%, 81%, and 85% respectively

Nigeria’s exchange rate gain revenue dropped by 73.2% in H1 2025 compared to H1 2024.
In April 2025, exchange rate gain fell by 90% year-on-year from ₦285.5B to ₦28.7B.
May saw an 81% drop, with revenue declining from ₦438.9B in 2024 to ₦81.4B in 2025.
January 2025 was the only month with a stable figure, matching January 2024’s ₦402.7B.
Exchange rate gain revenue for February and March 2025 was unavailable, likely worsening the total.
The first half of 2025 generated only ₦589.4B in FX gains, compared to ₦2.2T in the same period in 2024.

South Africa's personal income tax has increased in share from ~30% to nearly 40% over the years

Key Takeaways:

In 2007/08, personal income tax (PIT) contributed 29.46% of total tax revenue, while corporate income tax (CIT) added a substantial 24.46%.
The share of personal income tax in tax revenue rose by 27% from 2007/08 to 2023/24.
Corporate income tax contribution declined by 26% from 2007/08 to 2023/24.
In 2019/20, personal income tax made the largest contribution to tax revenue (38.9%), a 32% rise from the 2007/08 contribution.
Other taxes showed minor variations, averaging around 19% of total tax revenue.
Personal income tax reached its peak contribution at 38.92% in 2019/20 before dropping by 4% in 2023/24.

Over the last twenty years, the ratio of tax to GDP in South Africa has varied, reaching a high of 24.9%—a 19% increase since 2004/05

Key takeaways:

The tax-to-GDP ratio reached its peak in 2022/23 at 24.9%, signifying enhanced efficiency in tax collection.
Throughout the past two decades, the percentage of tax revenue relative to GDP has exhibited significant stability.
The tax revenue as a proportion of GDP has fluctuated between 21% and 25% over the last twenty years.
Notable declines occurred during global economic downturns, such as the financial crisis of 2008-2009 and the COVID-19 pandemic.
The recent years (2021-2024) reflect a robust recovery, with tax revenue percentages approaching peak levels.

Nigeria's VAT revenue shows over ₦1.1T increase in 2023 while the value in dollars shows a decline

VAT revenue in naira has consistently grown over the years, hitting an all-time high of ₦3.64 trillion in 2023.
The dollar value of VAT revenue declined despite the increase in naira terms, dropping from $5.88 billion in 2022 to $5.44 billion in 2023.
Over the last decade, VAT revenue in naira has grown at an impressive CAGR of 20.18%, while its dollar value grew at a much lower 5.48%, showing the impact of currency devaluation.
2023 saw one of the largest year-on-year increases in VAT revenue in naira, but the corresponding drop in dollar value indicates that exchange rate volatility are eroding real revenue gains.
Nigeria’s revenue collection efforts are improving, but the decline in dollar value highlights the need for economic stability and currency strength.
This trend reflects a broader issue in Nigeria’s economy - higher local earnings do not necessarily translate into increased global purchasing power.
With VAT being a major non-oil revenue source, policymakers must focus on stabilizing the exchange rate to maximize the real impact of revenue growth.

Three sectors accounted for a combined 59% of the total VAT collected in the first half of 2024

Three sectors, Manufacturing, ICT, and Mining & Quarrying, accounted for 58.8% of total VAT revenue in the first half of 2024.
Manufacturing alone contributed 24.8% of VAT, making it the highest-paying sector.
Nigeria’s digital economy is thriving, with ICT generating 17.6% of VAT revenue, signaling the growth of telecom, data services, and digital platforms.
The extractive industry remains vital, with Mining & Quarrying contributing 16.4% of total VAT collection.
Finance & Insurance (10.2%) and Public Administration & Defence (9.7%) also made significant contributions to Nigeria’s VAT revenue.
Despite contributions from 21 sectors, VAT revenue is still heavily reliant on a few key industries, highlighting the need for a broader tax base.

The top ten states accounted for 40% of the ₦82b shared in EMTL revenue, with Lagos receiving the highest share of ₦7.7b

With the top ten states receiving 40% of the ₦82b shared in EMTL, Lagos led with ₦7.68b, followed by Kano with ₦3.46b. Oyo, Rivers, and Kaduna rounded out the top five, each securing over ₦2b. These states are driving the lion’s share of the revenue. In stark contrast, the bottom ten states, including Bayelsa and Ebonyi, saw much smaller allocations, with each receiving less than ₦2b.

Since January 2024, Nigerian states have shared ₦82b in ETML, with the South-West receiving 23% (₦19b) of the total allocation

On December 1, 2024, fintech companies including OPay, PalmPay, and Moniepoint announced plans to begin implementing the Electronic Money Transfer Levy (EMTL), a ₦50 charge applied to electronic transfers of ₦10,000 and above. The announcement sparked widespread reactions from Nigerians who expressed concerns about the rising cost of living. Since January 2024, however, Nigerian states (excluding FCT) have shared ₦82b in EMTL revenue. The South West received the highest allocation of ₦19b, while the South East received the lowest, at ₦11b.

Local Company Income Tax payments in Nigeria more than tripled in Q2 2024, from ₦386b in Q1 to ₦1.35t

Local company income tax in Nigeria surged threefold quarter-on-quarter in Q2 2024, reaching ₦1.35t. Agriculture, Forestry, and Fishing led with a growth of 474.5%, while Household Employment and Own-Use Production experienced the steepest decline at -30.22%

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