By Niyi Jacobs
ManufacturersThe Nigerian manufacturing sector has shown remarkable resilience in the face of economic challenges, increasing its tax contributions by 84% in the second quarter of 2024.
According to data from the National Bureau of Statistics (NBS), the sector paid a total of N405.86 billion in taxes, comprising Company Income Tax (CIT) and Value Added Tax (VAT).
This significant increase in tax contributions is a testament to the sector’s ability to adapt and thrive despite the challenging economic environment. The manufacturing sector has faced numerous challenges in recent times, including foreign exchange volatility, high production costs, and multiple taxes. However, manufacturers have shown remarkable resilience and continue to play a vital role in Nigeria’s fiscal landscape.
The CIT paid by manufacturers in Q2 2024 saw a significant rebound, increasing to N221.97 billion, a 413.9% increase from Q1 2024. However, this is still 15.5% lower than the CIT contribution in Q2 2023. VAT contributions also rose to N183.89 billion, reflecting a 3.8% growth from Q1 2024.
The manufacturing sector’s contribution to government taxes is critical, particularly as it emerged as one of the largest contributors to CIT and VAT in Q2 2024. The sector’s ability to increase its tax contributions despite the challenging economic environment is a testament to its resilience and determination.
However, manufacturers have called for government support to address the challenges facing the sector, including foreign exchange volatility, high production costs, and multiple taxes. They have also urged the government to implement policies that will promote the growth and development of the sector.
Despite the challenges, the manufacturing sector remains a vital part of Nigeria’s economy, providing employment opportunities and contributing to the country’s GDP. The sector’s ability to increase its tax contributions is a positive sign that it is on the path to recovery and growth
