Manufacturing sector leads as FG earns ₦3.49 trn as tax remittance in H1

An analysis of the taxes paid by the different sectors of the economy in H1, 2023 has shown that a large chunk of the ₦3.49 trillion remitted to the federal government came from the manufacturing sector.

According to data released by the National Bureau of Statistics (NBS), there was a noticeable increment in the tax revenue when compared with figures obtained in 2022.

The tax revenue increased by 42.2% from ₦2.45 trillion collected in the first half of 2022 and 20.9% higher in contrast to the ₦2.89 trillion recorded in the second half of 2022.

When the taxes contributed by the different sectors were analysed, the manufacturing sector contributed a total of ₦606.7 billion making it the highest contributor to the Federal Inland Revenue Services (FIRS) during the period in review.

The Information, Communications and Technology (ICT) sector and the financial services sector came behind with a contribution of ₦436.5 billion and ₦412.5 billion respectively.

The amount contributed by the manufacturing sector in H1 2023 was 34.5% higher than the ₦451 billion the sector paid in H1 2022 and 22.6% more than the ₦495 billion paid in H2 2022. The total amount contributed by the sector also represents 17.4% of the total tax collected by the FG during the period.

For the ICT sector, the total sum of ₦436.5 billion was contributed as tax during the review period and accounted for 12.5% of the total tax collected.

The tax contributed by the sector during the period indicated an increase of 39.8% when compared to the ₦312.1 billion recorded in the corresponding period of 2022 and an increase of 36.8% when compared to the ₦318.9 billion paid in the second half of 2022.

The financial services industry which represents companies in the banking and insurance sector of the economy contributed the sum of ₦412.5 billion as tax in H1, 2023.

The amount paid by the financial sector accounted for 11.8% of the total tax collections by the FIRS.

The other sectors which made it to the top ten tax-paying sectors in Nigeria include mining and quarrying (₦198.3 billion), trade (₦124.4 billion), public administration (₦122.4 billion), transportation and storage (₦88.2 billion), other service activities (₦63.5 billion), construction (₦46.7 billion), and electricity (₦30.5 billion).