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Six Nigerian states raised more revenue through MDAs than taxes in 2025
  • Six states generated about ₦656 billion through MDAs in 2025, nearly half of all MDA revenue.
  • The number of states where MDAs accounted for over half of IGR fell from seven in 2024 to six in 2025.
  • Enugu’s MDA share rose from 82.9% in 2024 to 87.3% in 2025, widening its lead.
  • Kwara, Katsina and Osun recorded MDA shares of 61.6%, 60.1% and 58.5%, respectively.

Nigeria collected ₦34.6 trillion in company income tax over 11 years
  • Nigeria collected ₦34.62 trillion in company income tax across 45 quarters from Q1 2015 to Q1 2026.
  • Average quarterly collection stood at about ₦769 billion over the period.
  • CIT collections stayed below ₦1 trillion in every quarter until Q2 2023.
  • Since Q2 2024, collections have remained above ₦1 trillion for eight straight quarters.
  • The highest quarterly collection was ₦2.96 trillion in Q3 2025.
  • Annual CIT collections rose sharply from ₦2.82 trillion in 2022 to ₦9.21 trillion in 2025.
  • The recent surge is nominal and likely reflects stronger collections, inflation, naira depreciation, and higher naira-value foreign CIT receipts.

Company income tax collections declined across 13 sectors in Q1 2026
  • Thirteen of Nigeria’s 21 sectors recorded year-on-year declines in CIT collections.
  • Extraterritorial organisations recorded the steepest fall at 53.9%.
  • Construction collections fell by 52.4%, the second-largest decline.
  • Mining and agriculture declined by 39.4% and 40.8%, respectively.
  • Manufacturing still generated ₦74.5 billion despite a 31.0% decline.

Finance & Insurance now makes up 30% of Nigeria’s domestic company income tax, up from 12% in 2022
  • Company income tax collections rose from ₦1.7tn in 2022 to ₦5.0tn in 2025.
  • Finance & Insurance more than doubled its share, from 12.4% to 30.0%.
  • Finance became the largest single sector in the tax mix by 2025.
  • Manufacturing remained important, but its share fell from 27.9% to 17.7%.
  • ICT saw one of the sharpest declines, from 21.6% to 6.5%.
  • Mining & quarrying gained weight, rising from 8.4% to 14.5%.
  • Wholesale & retail also increased, from 3.6% to 7.0%.
  • The tax base became less evenly distributed across sectors.

Nigeria's VAT collections have more than tripled in three years
  • Nigeria’s total VAT rose from ₦2.5tn in 2022 to ₦8.6tn in 2025.
  • VAT collections more than tripled in four years.
  • Local VAT remained the largest source of VAT throughout the period.
  • Local VAT increased from ₦1.5tn to ₦4.5tn.
  • Local VAT averaged 54.4% of total VAT between 2022 and 2025.
  • Import VAT also grew strongly, from ₦521.5bn to ₦2.0tn.
  • Other payment channels rose from ₦510.8bn to ₦2.1tn.
  • VAT growth is increasingly being driven by non-import activity.

Local companies have consistently contributed most of Nigeria’s Company Income Tax payments since 2016
  • Local companies dominated CIT contributions in most years, accounting for over 50% of payments in 9 of 11 periods between 2015 and 2025 (Q1–Q3).
  • Foreign companies briefly closed the gap in 2023, contributing 49%, the closest they have come to matching local firms.
  • Local companies recorded their strongest share in 2021 at 65%, marking the widest gap between local and foreign contributors.
  • “Other payments” peaked during the pandemic, rising to 17% in 2020 before dropping to 0% from 2022 onward.

Local companies have consistently contributed most of Nigeria’s Company Income Tax payments since 2016
  • Local companies dominated CIT contributions in most years, accounting for over 50% of payments in 9 of 11 periods between 2015 and 2025 (Q1–Q3).
  • Foreign companies briefly closed the gap in 2023, contributing 49%, the closest they have come to matching local firms.p
  • Local companies recorded their strongest share in 2021 at 65%, marking the widest gap between local and foreign contributors.
  • “Other payments” peaked during the pandemic, rising to 17% in 2020 before dropping to 0% from 2022 onward.

97% of businesses in Kogi are aware of Nigeria's 2025 tax reform, while 99% in Abia are not
  • Kogi entrepreneurs have the highest tax policy awareness in Nigeria (96.8%) in 2025.
  • Abia has the lowest awareness nationwide at just 1.4%.
  • Fewer than one-third of Nigerian states have awareness levels above 60%.
  • Major economic hubs like Lagos and Rivers have awareness below 50%.
  • Northern states dominate the top awareness rankings more than southern states.
  • Several states cluster around the 40–50% range, indicating partial reach.
  • States with low awareness risk lower compliance and higher friction during enforcement.
  • The gap between the highest and lowest states exceeds 95 percentage points, showing extreme disparity.

Enugu State recorded the sharpest IGR increase in 2024, growing over fivefold
  • Enugu led the country in IGR growth in 2024 with a 433% increase.
  • Bayelsa, Jigawa, Kano, and Osun also experienced large year-on-year increases, indicating widening fiscal activity across regions.
  • Lagos, Rivers, and the FCT recorded slower growth rates but still generated the largest total revenues.
  • The fastest growth often came from states focused on reforming tax systems or broadening local revenue sources, rather than from being traditionally big or wealthy states alone.

Lagos’ IGR in 2024 was over 3x more than all other South West states combined
  • Lagos drives most revenue in the South West, accounting for the clear majority of the region’s IGR.
  • Each geopolitical zone has one dominant state that shapes its revenue profile.
  • Fiscal capacity remains heavily skewed toward a few urban and resource-rich states.

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