According to an investigation, ten firms that are listed on the Nigerian Exchange paid N392.7 billion in income taxes to the Federal Government in the first half of 2025, up 16.1% year over year from N338.3 billion in the same time in 2024.
The companies are 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 their Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the period ending June 30, 2025, which was recently filed with the Nigerian Exchange Limited.
The Academy of Tax Law defines income tax as a direct levy that governments impose on the money made by people, businesses, and other organizations in a particular jurisdiction.
With remittances of N209.6 billion in the first half of 2025, up from N103.1 billion in the first half of 2024, Dangote Cement Plc became the top contributor to the tax pool. The size of the company’s operations and its crucial role in bolstering government revenue are shown by the fact that its tax payment nearly doubled, increasing by 103%.
Lafarge Africa Plc reported a tax outflow of N67.1 billion in the first half of 2025, which was much greater than the N17.3 billion that was remitted in the first half of 2024 during the period under review.
Higher cement sales income and operational expansion throughout its Nigerian plants are the main drivers of this 288 percent gain.
Following suit, Nestle Nigeria Plc paid N37.8 billion in income taxes in H1 2025, down from N75.6 billion in H1 2024. This indicates a 50% decline, which is mostly attributable to changes in taxable profit recognition over the period and accounting adjustments. For H1 2025, BUA Cement Plc sent in N33.9 billion in taxes, a significant increase over the N5.9 billion it sent in during the same period the previous year. The reward amounts to a 477 percent gain.
International Breweries Plc’s contribution decreased by 53% to N20.2 billion from N43.5 billion in H1 2024. Reduced taxable profit as a result of higher production costs and pressure from the beverage industry’s competition was the reason given by analysts for this drop.
In H1 2025, Nascon Allied Industries Plc sent N7.7 billion, a 222% increase from N2.4 billion in the first half of 2024. Increased sales and enhanced operational effectiveness in the food and agro-processing sector were the main drivers of the upswing. Julius Berger Plc paid N6.1 billion in income taxes, a 55% decrease from N13.5 billion in H1 2024.
Additionally, UAC of Nigeria Plc reported tax payments of N3.7 billion in H1 2025, a 31% decrease from N5.4 billion in the same period in 2024. Despite inflationary pressures, Cadbury Nigeria Plc’s core confectionery activities remained stable, as seen by their N4.4 billion remittance, which was a slight 4.7% increase from N4.2 billion in H1 2024. Income taxes paid by Dangote Sugar Refinery Plc decreased by 96.8% to N2.2 billion from N67.4 billion in H1 2024.
Charles Sanni, the CEO of Cowry Treasurers Limited, commented on the recent spike in tax payments from businesses listed on the Nigerian Exchange and mostly linked the increase to the inflationary effect of the recent currency depreciation. It is only the inflationary effect brought on by the naira’s depreciation. In general, inflation has increased the nation’s revenue. As a result, we anticipate that it may persist, and the increased tax rate will further accelerate it,” Sanni said.
He also emphasized that although smaller businesses are eligible for tax breaks or modifications, the total impact will rely on how many businesses operate at the N12 million turnover threshold. “There is a tax adjustment or relief for small businesses, but the issue remains: how many businesses have a turnover of N12 million or less? In other words, we ought to anticipate a rise. Due to their high production costs, the enterprises will need to modify their selling prices, Sanni stated.
Sanni emphasized the manufacturing sector’s vital role in the economy and compared its significance to policies being promoted globally.
Given that manufacturing is the foundation of the economy, it is highly significant. Since he is considering increasing output, that is what we are witnessing Donald Trump battling for today. The firm income tax will go up if you manufacture locally, but import fees will be where the tax goes. Your percentage contribution to the economy will decrease if you don’t encourage direct investment and increase local output. Infrastructure must be improved in order to host it,” he continued.
Sanni mentioned supply difficulties that could affect income creation as one of the sector’s challenges. “There is a sort of inelastic supply, meaning that manufacturing companies are unable to increase the supply at will even if the price goes up.” As a result, the quantities we anticipate will decrease. Demand overall will drop. The manufacturing businesses’ revenue contribution may be impacted by future events including trade policies and tariffs, he warned.
Sanni also described the possible advantages of Nigeria implementing an import substitution plan. The cost of those commodities entering Nigeria will rise if import duties are raised. It will be necessary for people to find a way to replace imports. An import substitution strategy is something the government can strive for. We shall be at the other end of the spectrum if the import tariff rate exceeds the cost of production; however, if the opposite is true, then everything is OK. It will be beneficial to the economy if the government can plan and build infrastructure,” he said.
Four tax reform legislation addressing important aspects of Nigeria’s revenue and fiscal system were recently signed into law by President Bola Tinubu. The Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill are the four bills in question.
