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Dangote, MTN Nigeria Top List as Nigerian Companies Pay Over N1.9trn Tax to Federal Government
Economy

Dangote, MTN Nigeria Top List as Nigerian Companies Pay Over N1.9trn Tax to Federal Government

by  Dave Ibemere 2 min read
  • Nigerian companies in the past year paid to the account of the federal government over N1.9 trillion
  • Out of which 17 companies listed on the Nigerian Exchange Limited (NGX) remitted a total tax of over N500 billion
  • Companies operating in Nigeria are meant to pay income tax, Education tax, National Information Technology Development Agency (NITDA) tax, and Nigeria Police Trust Fund levy

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The National Bureau of Statistics (NBS) has revealed that the federal government generated a total of N1.69 trillion as Company Income Tax (CIT) in 2021.

Out of this amount 17 companies listed on the Nigerian Exchange Limited (NGX) paid a total of N589.6 billion, an increase of 39 per cent over the N371.56 billion reported in 2020.

Companies are required by law to remit tax income to State, federal government agencies, among other agencies where they operate.

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Dangote, MTN Nigeria Top List as Nigerian Companies Pay Over N1.9trn Tax to Federal Government
Dangote Cement is the biggest asset of Africa's richest man Aliko Dangote. Credit: Michael Nagle/Bloomberg via Getty Images
Source: UGC

Aside from paying the statutory rate of 30 per cent of total profit as the company’s income tax, companies operating in Nigeria are meant to pay Tertiary Education Tax, National Information Technology Development Agency (NITDA) Tax and Nigeria Police Trust Fund Levy.

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Breakdown

Dangote Cement, MTN Nigeria, Lafarge, United Bank of Africa and Zenith Bank shows they remitted a combined total of almost N400 billion in tax.

Dangote Cement led with a total payment of N173.92 billion followed by an MTN tax payment of N138.03 billion.

United Bank of Africa and Zenith Bank together recorded a payment of N35.81 billion and N34.39 billion.

Lafarge another cement giant paid N10.78 billion tax to the federal government in 2021.

Zenith, Gtbank lead list of Nigeria's most valuable banks in January

Read also

Dangote’s net worth suffers setback as Cement Company loses N409 billion

Meanwhile Legit.ng in an earlier report revealed that Zenith Bank is starting 2022 as the most valuable commercial bank in Nigeria as the total value of Nigerian bank closed at N194.5 billion.

In second-most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.

Also, the aggregate market cap of all the banks under review went up by N46.6 billion to stand at N3.84 trillion.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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