Agriculture led company income tax with 474.50% in Q2 2024 – NBS report

Nigeria’s agricultural sector led the growth in Company Income Tax (CIT) during Q2 2024, with a 474.50% quarter-on-quarter increase, according to the National Bureau of Statistics. Total CIT for Q2 2024 stood at N2.47tn, up 150.83% from N984.61bn in Q1. Local CIT payments contributed N1.35tn, while foreign payments accounted for N1.12tn. Besides agriculture, the financial and insurance sectors grew by 429.76%, and manufacturing by 414.15%. In contrast, household activities declined by -30.22%. Year-on-year, CIT rose 59.52% from N1.55tn in Q2 2023, indicating economic recovery.
Source: Punch

Our Review
The significant rise in Nigeria’s agricultural sector contribution to Company Income Tax (CIT) in Q2 2024, with a staggering 474.50% quarter-on-quarter increase, signals the growing economic potential of the sector. This growth not only reflects enhanced productivity but also shows the increasing formalization and profitability of agribusinesses. The National Bureau of Statistics report reveals that total CIT surged to N2.47tn, with agriculture playing a pivotal role alongside the financial and manufacturing sectors.
The impressive figures suggest that more agribusinesses are scaling up operations, contributing significantly to national revenue. This uptick in CIT is a strong indicator of economic recovery post-pandemic, as the agricultural sector shows resilience and capacity for further growth.
For decision-makers in the agribusiness industry, this news serves as motivation to further capitalize on opportunities within the value chain. Increased tax revenue from the sector can be channeled back into improving infrastructure, technology adoption, and financing for smallholder farmers, creating a self-sustaining growth cycle.
Collaborations between private sector players and the government should be encouraged to maintain this upward trajectory and ensure sustained contributions from agriculture to Nigeria’s economy.