Ten companies listed on the Nigerian Exchange remitted a total of N392.7 billion in income taxes to the Federal Government in the first half of 2025, up from N338.3 billion in the corresponding period of 2024, marking a year-on-year increase of 16.1 per cent, according to an analysis by The PUNCH.
The companies, based on their Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the period ended 30 June 2025 and recently filed with the Nigerian Exchange Limited, include Dangote Cement Plc, Nestle Nigeria Plc, Lafarge Africa Plc, BUA Cement Plc, International Breweries Plc, Julius Berger Plc, Nascon Allied Industries Plc, UAC of Nigeria Plc, Cadbury Nigeria Plc, and Dangote Sugar Refinery Plc.
According to the Academy of Tax Law, Income Tax is a direct levy imposed by governments on the income generated by individuals, corporations, and other entities within a specific jurisdiction
Dangote Cement Plc emerged as the largest contributor to the tax pool, remitting N209.6 billion in the first half of 2025, up from N103.1 billion in H1 2024. The company’s tax payment nearly doubled, a 103 per cent increase, underlining the scale of its operations and its central role in supporting government revenue.
In the period under review, Lafarge Africa Plc recorded a tax outflow of N67.1 billion in the first half of 2025, significantly higher than the N17.3 billion remitted in H1 2024.
This reflects a 288 per cent increase, driven by higher revenue from cement sales and operational expansion across its plants in Nigeria.
Nestle Nigeria Plc followed, paying N37.8 billion in income taxes in H1 2025, a decline from N75.6 billion in H1 2024. This represents a 50 per cent decrease, largely attributed to accounting adjustments and variations in taxable profit recognition during the period. BUA Cement Plc remitted N33.9 billion in taxes for H1 2025, a substantial rise from N5.9 billion in the same period last year. The payment represents a gain of 477 per cent.
International Breweries Plc contributed N20.2 billion, down from N43.5 billion in H1 2024, marking a 53 per cent decrease. Analysts attributed this decline to lower taxable profit following increased production costs and competitive pressures in the beverage sector.
Nascon Allied Industries Plc remitted N7.7 billion in H1 2025, up from N2.4 billion in the first half of 2024, a 222 per cent increase. The surge was driven by higher sales and improved operational efficiency in the food and agro-processing segment. Julius Berger Plc paid N6.1 billion in income taxes, compared with N13.5 billion in H1 2024, a 55 per cent drop.
Also, UAC of Nigeria Plc recorded N3.7 billion in tax payments in H1 2025, compared with N5.4 billion in the corresponding period of 2024, representing a 31 per cent decline. Cadbury Nigeria Plc remitted N4.4 billion, down from N4.2 billion in H1 2024, a modest 4.7 per cent increase, reflecting stability in its core confectionery operations despite inflationary pressures. Dangote Sugar Refinery Plc paid N2.2 billion in income taxes, down from N67.4 billion in H1 2024, representing a decline of 96.8 per cent.
Commenting on the recent surge in tax remittances by companies listed on the Nigerian Exchange, the Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, attributed the increase largely to the inflationary impact arising from the recent devaluation of the naira. ‘It is purely the inflationary impact as a result of the devaluation of the naira. Generally, revenue has gone up in the country because of inflation. Because of that, we expect that might continue, and also the new tax rate will push it further’, Sanni explained.
He further highlighted that while there are tax adjustments or reliefs for smaller companies, the overall effect will depend on the number of firms operating at a turnover threshold of N12 million. ‘There is a tax kind of adjustment or relief for small companies, but the question again is how many companies are operating between N12 million turnover. That is to say, we should expect to see an increase. The companies will have to adjust their selling price because their production cost is quite significant’, Sanni said.
Sanni emphasised the critical role of the manufacturing sector in the economy, likening its importance to policies being promoted in other parts of the world.
‘It is quite significant in the sense that manufacturing is the bedrock of the economy. That is what we are seeing Donald Trump fighting for today, because he is looking at stepping up production. If you produce locally, the company income tax will increase, but if you import, the tax will be in import levies. If you don’t boost local production and promote direct investing, then your percentage contribution to the economy will decline. In order to host it, you have to boost infrastructure’, he added.
On the limitations facing the sector, Sanni noted the supply constraints that could impact revenue generation. ‘There is a kind of inelastic supply, that is, even if the price goes higher, the manufacturing companies don’t have the capacity to increase the supply at will. This will reduce the volumes we are expecting. Aggregate demand will decline. Future factors, such as tariffs and trade policy, can affect the manufacturing companies’ contribution to revenue’, he said.
Sanni also outlined the potential benefits of an import substitution strategy for Nigeria. ‘If we increase taxes on imports, it makes those goods coming to Nigeria more expensive. There will be a need for individuals to look for an import substitution strategy. The government can work towards an import substitution strategy. If the import duty rate is higher than the production cost, then we will be at the other end of the curve, but if it’s the other way around, then it is good. If the government can project and work on infrastructure, then it will make sense for the economy’, he concluded.
Recently, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework. The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
