Nigeria is on course to witness its highest level of corporate tax declarations in history by the end of 2025, as businesses continue to post stronger earnings despite persistent economic challenges.
According to analysis by Nairametrics, companies operating across key sectors—including telecommunications, banking, consumer goods, and energy—are expected to pay significantly higher taxes to the Federal Government, setting a new benchmark for corporate contributions to national revenue.
The report highlights that improved business activity, supported by foreign exchange stability, better-than-expected consumer demand, and ongoing structural reforms, has boosted profitability across board. This surge in earnings is translating directly into higher Company Income Tax (CIT) obligations.
Analysts note that the development comes at a crucial time when government revenue diversification is a top priority amid reduced oil earnings and mounting expenditure pressures. The anticipated surge in tax receipts could help strengthen public finances and support the implementation of critical infrastructure and social projects.
However, experts caution that while the record tax revenue reflects resilience in Nigeria’s formal business sector, it does not necessarily signal broad-based economic relief. Small and medium-sized enterprises (SMEs), which make up a large share of the economy, continue to struggle with high operating costs, limited access to credit, and inadequate infrastructure.
The Federal Inland Revenue Service (FIRS) has recently intensified compliance enforcement and broadened its digital tax administration tools, further ensuring that more companies are brought into the tax net and that declared revenues reflect actual earnings.
If projections hold, 2025 could mark a turning point for Nigeria’s non-oil revenue profile, positioning corporate taxes as a stronger pillar of national income at a time when global energy markets remain volatile.
The final figures are expected to be published by the FIRS in the 2025 year-end revenue performance report.
Would you like me to also add sector-by-sector highlights (like which industries are driving most of the tax growth—banks, telcos, manufacturing) to give the story more weight for a business audience?
