.The Nigerian manufacturing sector has witnessed a significant surge in tax contributions, reaching a nine-month high in the second quarter of 2024 despite ongoing economic challenges.
This is according to newly released data from the National Bureau of Statistics (NBS).
In the second quarter of 2024, the total tax paid by manufacturers, which combines both Company Income Tax (CIT) and Value Added Tax (VAT), amounted to N405.86 billion.
This represents an 84.1 per cent increase from the N220.35 billion collected in the first quarter of 2024 and a marginal 2.1 per cent decrease compared to the same period in the second quarter of 2023, when the total tax stood at N414.51 billion.
According to Nairametrics, the CIT paid by the manufacturing sector in the second quarter of 2024 saw a significant rebound, increasing to N221.97 billion.
This marks a 413.9 per cent increase from Q1 2024, when the CIT collected was N43.17 billion.
However, despite this strong recovery, the CIT remains 15.5 per cent lower than the second quarter of 2023, where the CIT contribution reached N262.73 billion.
The VAT contributions in the second quarter of 2024 also rose to N183.89 billion, reflecting a 3.8 per cent growth from the first quarter of 2024’s N177.17 billion.
When compared to Q2 2023, the VAT collections increased by 21.1 per cent, up from N151.78 billion.
The data also shows that manufacturers contributed 8.99 per cent of the total CIT and 11.78 per cent of the total VAT in the second quarter of 2024.
These contributions highlight the manufacturing sector’s critical role in Nigeria’s fiscal landscape, particularly as it emerged as one of the largest contributors for CIT and VAT in the quarter.
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