Nigerian businesses appear to be generating sales but struggling to convert them into profits, according to the analysis of the latest tax data, raising fresh concerns about the pressure high operating costs continue to place on the private sector.
Data released by the National Bureau of Statistics (NBS) showed that Company Income Tax (CIT) collections fell sharply by 31.05 percent to N1.37 trillion in the first quarter of 2026, down from N1.98 trillion in the corresponding period of 2025.
In contrast, Value Added Tax (VAT) collections rose by 17.06 percent to N2.42 trillion during the same period, compared to N2.06 trillion a year earlier.
The divergence between the two taxes has drawn attention because VAT is tied to spending and transactions, while CIT is linked to corporate profitability.
“Two NBS numbers from Q1 2026 that nobody is reading together are VAT collections and company income tax collections,” said Opeyemi Ajetunmobi,
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