Nigeria's tax revenue

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%

Nigeria’s diversified tax revenue structure now has company income tax (Non-Oil) leading the pack at ₦6.54 trillion, equivalent to 30.15% of total revenue. This suggests that despite Nigeria's historical reliance on oil, private sector and corporate activities outside oil and gas are now the top drivers of tax revenue.

Closely behind is NCS-Import VAT, which contributed ₦5.13 trillion or 23.63%, reaffirming the critical role of trade and customs revenue. With Nigeria being a high-import economy, VAT collections on imports have become a dependable and predictable revenue stream.

Oil-related taxes, notably Petroleum Profit Tax (₦3.92 trillion) and CIT (Oil & Gas) (₦1.84 trillion), together account for over ₦5.7 trillion or roughly 26.5%, which shows that while oil is still important, its dominance has been overtaken by non-oil sources, a trend consistent with fiscal diversification goals.

Smaller tax heads like Stamp Duty, Education Tax, and Non-Import VAT provide moderate revenue contributions, ranging between ₦1.5–1.6 trillion, indicating stable collection mechanisms in those areas.

On the lower end of the spectrum, categories such as Capital Gains Tax, NITDEF (National Information Technology Development Fund), NASENI (National Agency for Science and Engineering Infrastructure), and NPTFL (Nigeria Police Trust Fund) collectively contribute less than 2%, highlighting the potential for policy-driven improvement in enforcement, tax base expansion, or administrative efficiency.

Overall, this chart demonstrates a shifting tax landscape where non-oil sources are becoming more dominant, and import-related collections remain strong, while smaller and newer taxes present opportunities for enhanced growth through reform or enforcement.

Source:

FIRS

Period:

2024
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