Nigeria earns over N50bn as income tax from oil sector in 2020

Despite economic disruptions which characterised the year 2020, Nigeria was still able to rake in over N50 billion as income tax from the oil and gas sector within the first and the third quarter of the year.

The ‘Company Income Tax By Sectors (2015 – Q3 2020)’ report released by the National Bureau of Statistics, NBS showed that the amount was raised from oil-producing companies, oil-marketing companies, offshore operations, and gas companies.

A breakdown showed that oil-producing companies paid the sum of N9,436,071,825.59 as income tax in Q1, N8,563,023,965 in Q2, and N11,685,674,191 in Q3, making a total of N29,684,769,982 paid in the period under review. However, further dig showed that the country earned 13.66% less in income tax in 2020 when compared with 2019. Last year, oil Producers paid a total of N45,712,206,771 into government coffers.

Oil Marketers paid N2,337,162,280 in Q1, N2,994,669,567 in Q2, and N8,466,477,242 in the third quarter, a total of N13,798,309,090 paid by the sector. The country gained a huge 42.58% as income tax from oil marketers in 2020, as statistics revealed that when compared with 2019, revenue made from the sector in form of tax was a total of N15,043,608,644.

Nigeria raked in N778,086,768 from offshore operators in Q1, N710,515,030 in Q2, and N2,078,424,028 in Q3, making a total of N3,567,025,826 earned from the sector. Statistics showed a whopping decline of almost 100%, precisely 95.76% in income tax from the sector from 2019. Last year, the country had raked in N4,496,578,020.

A total of N6,328,270,214 was earned as income tax from gas producers as at Q3 2020. Breakdown showed that they paid N914,091,751 in Q1, N655,536,838 in Q2, and N4,758,641,623 in Q3. The country had raised N6,976,642,289 from the sector in 2019.

Outside the oil and gas sector, a breakdown by sectors for Q3 2020 reflected that the sum of N416.01bn was generated as CIT as against N402.03bn generated in Q2 2020 and N520.89bn generated in Q3 2019 representing 3.48% increase Quarter-on-Quarter and -20.13% decrease Year-on-Year.

Professional Services including Telecoms generated the highest amount of CIT with N55.52bn generated and closely followed by Other Manufacturing which generated N42.03bn, Banks & Financial Institutions generated N24.05bn while Mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93m, N167.51m and N321.72m generated respectively

Out of the total amount generated in Q3 2020, N244.70bn was generated as CIT locally while N70.34bn was generated as foreign CIT payment.

The balance of N100.97bn was generated as CIT from other payments.