Nigeria’s industrial goods firms income tax payments surge 98.9% as profits rise 43.1%

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Nigeria's listed industrial goods companies increased their income tax payments by 98.88 percent to N271.7 billion in the first nine…

Nigeria’s listed industrial goods companies increased their income tax payments by 98.88 percent to N271.7 billion in the first nine months of 2026, as stronger profitability across most of the companies boosted their contributions amid the implementation of the country’s new tax laws.

The companies analysed covered 7 out of the 11 companies listed under the NGX Industrial Goods sector.The companies paid a combined N271.7 billion in income taxes in the nine months ended September 2026, compared with N136.6 billion in the corresponding period of 2025, representing a 98.88 percent increase.

This coincided with a 43.07 percent rise in their combined profit before tax to N2.49 trillion from N1.74 trillion in the corresponding period of 2025, reflecting improved profitability across much of the sample.

The companies analysed include Dangote Cement, BUA Cement, HBM Nigeria, Beta Glass, Chemical and Allied Products, Meyer Plc and Berger Paints.

Yvonne Afolabi, a tax expert, said the performance highlights how higher sales, operational efficiencies and improved margins among major manufacturers have strengthened corporate earnings, providing a larger profit base from which taxable income can be generated.

The rise in corporate tax contributions stems from Nigeria’s new tax framework, which took effect on January 1, 2026, to streamline administration, boost compliance, and unify multiple charges.

Under the Nigeria Tax Act 2025, standard corporations face a 30 percent income tax rate while qualifying small businesses remain exempt, alongside revised rules for capital gains.

The legislation also introduces a consolidated 4 percent development levy on assessable profits to replace separate charges like the Tertiary Education, NITDA, NASENI, and Police Trust Fund levies.

Furthermore, large domestic corporations and multinational enterprises meeting specific turnover thresholds are now subject to a 15 percent minimum effective tax rate.

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