Indications that Nigeria real sector’s performance remain unimpressive despite ongoing fiscal reforms by the Federal Government to boost the nation’s Gross Domestic Product (GDP) have emerged with the Company Income Tax (CIT) payments by manufacturers dipping to N74.48bn in Q1 2026 from N160.11bn from N234.59bn in Q1 2025, representing 31.05 per cent year-on-year drop in revenue accruals from the sector.
The latest Company Income Tax for Q1 2026 report by the Nigeria Revenue Service (NRS) published by the National Bureau of Statistics (NBS) showed that quarter-on-quarter on, CIT paid by manufacturers fell by 8.08 per cent to N1.37tn in Q1 2026 from N1.49tn in Q4 2025, indicating N67.36bn drop.
The statistics agency reported that despite the decline in tax payments, the real sector remained one of the three largest contributors to domestic CIT in the quarter, accounting for 13.82 per cent of domestic CIT, compared to financial and insurance activities with 24.73 per cent and mining and quarrying with 16.06 per cent.
The report indicated that when analyzed in value terms, financial and insurance activities generated N133.27bn, mining and quarrying generated N86.55bn, while manufacturing paid N74.48bn.
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However, the Bureau reported that when measured against total CIT collections of N1.37tn, including foreign currency payments, manufacturing contributed only about 5.45 per cent.
The report showed that domestic CIT contributed N538.91bn, while foreign CIT payments accounted for N828.82bn, showing that foreign-related CIT accounted for 60.6 per cent of total CIT collections in Q1 2026.
A further analysis of the CIT accruals revealed that agriculture, forestry and fishing recorded the steepest quarter-on-quarter decline at 73.52 per cent, followed by construction at 63.15 per cent.
By contrast, water supply, sewerage, waste management and remediation activities recorded the highest quarter-on-quarter growth at 485.71 per cent, followed by activities of households as employers at 197.04 per cent.
