Nigeria’s manufacturing sector contributed a total of N881.29 billion in Company Income Tax (CIT) in 2025, according to the latest data released by the National Bureau of Statistics (NBS).
The figure represents a significant increase from the N663.46 billion recorded in 2024, highlighting strong year-on-year growth and underscoring the sector’s expanding role in Nigeria’s revenue base and industrial activity.
The NBS data showed that while overall performance remained strong, contributions were uneven across the quarters, reflecting broader fluctuations in corporate tax collections during the year.
In the first quarter of 2025, the manufacturing sector contributed N107.90 billion, before surging to N360.20 billion in the second quarter—the highest quarterly figure recorded for the year. Collections declined to N271.34 billion in the third quarter and further dropped to N141.84 billion in the fourth quarter.
The fourth-quarter slowdown mirrored a broader contraction in corporate tax collections. Total CIT across all sectors fell sharply to N1.49 trillion in Q4 from N2.96 trillion in Q3, representing a 49.81% quarter-on-quarter decline. Despite this, total CIT still recorded a 13.38% year-on-year increase compared to Q4 2024.
Further breakdown of Q4 figures showed that domestic CIT contributed N819.83 billion, while foreign CIT accounted for N668.21 billion, indicating a relatively balanced contribution between local and international companies.
Overall, total CIT collections for 2025 stood at N9.218 trillion, according to the NBS.
The performance of the manufacturing sector comes against the backdrop of its continued importance to Nigeria’s non-oil economy. Earlier reports indicated that the sector accounted for 8.05% of real Gross Domestic Product (GDP) in 2025, slightly lower than the 8.24% recorded in 2024.
Key industries, including consumer goods, cement, and industrial materials, have continued to drive output and revenue growth within the sector. The manufacturing industry remains central to Nigeria’s economic diversification strategy, helping to reduce reliance on oil revenues.
However, the sector continues to face persistent challenges, including high production costs, exchange rate volatility, and infrastructure deficits.
Broader tax data provides additional context for the sector’s performance. CIT collections rose from N2.78 trillion in Q2 2025 to N2.96 trillion in Q3, representing a 6.55% increase, before reversing sharply in Q4 amid wider economic pressures. The decline in manufacturing tax contributions during the same period aligns with this broader trend.
Recent developments suggest that macroeconomic conditions continue to influence quarterly performance, even as overall growth remains positive.
Earlier in 2026, reports indicated that manufacturing activity slowed in January due to rising costs, weak demand, and structural challenges, particularly in the chemicals, pharmaceuticals, plastics, and rubber sub-sectors.
In response, the Federal Government introduced the Nigerian Industrialisation Policy in January 2026, aimed at promoting value addition, industrial growth, and job creation.
Additionally, in June 2025, Bola Ahmed Tinubu signed four major tax reform bills into law, including the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
These reforms are expected to improve tax administration, enhance compliance, and strengthen revenue mobilisation across the country.
