Treasury generates N51.1b from telecom out of N347.81b CIT
By Jeph Ajobaju, Chief Copy Editor
MTN Nigeria, Airtel, Glo, and other information and communication technology (ICT) players generated N51.1 billion out of N347.81 billion that Company Income Tax (CIT) fetched Abuja in the fourth quarter ended December 2021 (Q4 2021).
CIT slashed 26.4 per cent against N472.52 billion in Q3 2021 but rose 17.6 per cent year-on-year (YoY) above N295.72 billion in Q4 2020, according to the latest report of the National Bureau of Statistics (NBS).
A total N258.85 billion was collected from firms operating in Nigeria, the balance N88.96 billion came as foreign CIT payment.
In terms of trillions, the biggest CIT of N1.69 trillion was generated in 2015, which was 19.6 per cent greater than N1.41 trillion in 2020 and 3.6 per cent more than N1.63 trillion in 2019.
Progressive CIT decline since 2016 is attributable to N113.62 billion drop in foreign CIT payment. Foreign CIT dropped from N202.58 billion in Q3 2021 to N88.96 billion in Q4 2021.
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Q4 2021 CIT remittance by sector
- ICT – N51.1 billion. Not surprising, considering the billions of naira pre tax profit made by MTN Nigeria, Airtel, Glo, and other telcos, according to Nairametrics.
- Manufacturing – N45.09 billion. A N13.63 billion dip against N58.72 billion in Q3 2021
- Financial and Insurance – N31.06 billion
- Public Administration – N23.66 billion. Some N5.38 billion above N18.28 billion in Q3 2021
Other sectors that ramped up their CIT remittance include:
- Services
- Electricity
- Professional Services
- Construction
- Trade (wholesale and retail)
Warning sign
Nairametrics notes that revenue crunch has affected the government’s ability to finance its budget, hence more debt acquisition.
This is exacerbated by decline in crude oil earnings as Nigeria is not meeting its production quota allotted by the Organisation of Petroleum Exporting Countries (OPEC).
Besides, fuel subsidy gulps a significant portion of government income, which makes it imperative to improve non-oil revenue.
The decline in Q4 2021 raises concern but 2021 as a whole is a record in local CIT generation.
. CIT slashed 26.4 per cent against N472.52 billion in Q3 2021){kind=link}