Corporate Tax Payments Rise by 10.6%
No fewer than 89 companies listed on the Nigerian Exchange paid a combined N579.78bn as company income tax in the first quarter of 2026.
The figure represents a 10.60 per cent increase from the N524.23bn recorded in the same period of 2025.
An analysis of unaudited financial statements showed that 89 firms reported tax payments during the period.
However, 54 companies either recorded zero tax obligations, delayed their filings, or failed to disclose tax figures.
ICT Sector Emerges as Top Contributor
The Information and Communications Technology sector recorded the highest tax contribution among all business categories.
Companies in the sector paid N191.22bn in taxes during Q1 2026.
This marked a sharp 175.8 per cent increase from N69.32bn in Q1 2025.
MTN Nigeria Communications Plc accounted for most of the increase after recording a tax charge of N190.92bn.
Meanwhile, the Industrial Goods sector followed with N151.31bn in taxes.
The sector posted an 18.9 per cent increase from N127.29bn recorded a year earlier.
Oil and Gas Tax Payments Decline
Oil and gas firms paid N177.61bn in taxes during the quarter.
However, the amount represented a 36.9 per cent decline from N281.25bn in Q1 2025.
Analysts linked the drop mainly to lower tax charges by Seplat Energy Plc.
Consumer goods firms also increased their tax contributions significantly.
The sector remitted N62.69bn, representing a 73.8 per cent rise from N36.07bn.
Similarly, financial services companies paid N56.69bn in taxes, up by 27.7 per cent from N44.38bn.
Smaller Sectors Record Lower Contributions
At the lower end, natural resources companies paid N121.43m in taxes.
The figure reflected a 4.2 per cent decline year-on-year.
Construction and real estate firms also recorded weaker tax payments.
The sector remitted N107.36m, representing a 51.8 per cent drop.
MTN, Seplat, Dangote Cement Top Tax List
MTN Nigeria emerged as the largest taxpayer during the quarter with N190.92bn.
Seplat Energy followed with N176.60bn.
Other major taxpayers included Dangote Cement Plc with N100.07bn and Guaranty Trust Holding Company Plc with N84.76bn.
Ecobank Transnational Incorporated also recorded N73.46bn in tax payments.
In addition, First HoldCo Plc paid N53.26bn, while Lafarge Africa Plc recorded N51.17bn.
Stanbic IBTC Holdings Plc, Access Holdings Plc, and Zenith Bank Plc also ranked among the top contributors.
Some Firms Record Sharp Tax Growth
Veritas Kapital Assurance Plc posted the strongest year-on-year increase in tax payments.
Its tax expense surged by 746.6 per cent during the period.
Sterling Financial Holdings Company Plc followed with a 338.9 per cent increase.
First HoldCo also recorded a 179.1 per cent rise in tax payments.
AXA Mansard Insurance Plc and Presco Plc posted strong increases as well.
Analysts Explain Tax Differences
Market analysts attributed the variations in tax payments to profitability levels, sector conditions, and tax incentives.
Managing Director of Afrinvest Consulting, Abiodun Keripe, said stronger earnings naturally translated into higher tax obligations.
According to him, companies with improved pricing power and better cost management recorded stronger profitability.
He cited firms such as Dangote Sugar Refinery Plc, Presco Plc, and Nestlé Nigeria Plc as examples.
Nestlé Nigeria increased its tax expense by 65.8 per cent after revenue growth and lower finance costs improved profitability.
Similarly, financial institutions posted stronger tax remittances due to higher earnings.
GTCO doubled its tax expense, while First HoldCo recorded significant growth after profit before tax increased sharply.
Tax Reforms May Reshape Corporate Burden
Lead economist at CardinalStone, Olaolu Boboye, said company-specific incentives and deferred tax adjustments continue to influence tax exposure.
He also noted that firms operating under the Petroleum Industry Act may face different tax structures.
Meanwhile, SBM Intelligence partner Ikemesit Effiong said Nigeria’s new tax laws may not significantly reduce effective tax rates for large firms.
According to him, new levies and global minimum tax rules could offset lower headline tax rates.
Afrinvest’s Keripe added that the reforms mainly target broader tax compliance and improved administration rather than drastic tax reductions.
