Despite Tax Credit, 28 NGX Listed Firms Paid N2.5trn Tax in 2025

Kayode Tokede

Despite the road infrastructure tax credit scheme of the federal government, 28 companies listed on the Nigerian Exchange Limited (NGX) paid an estimated N2.5trillion tax to Federal Inland Revenue Service (FIRS) and other revenue agencies in the financial year ended December 31, 2025.  

This is about a 171 per cent increase over N924.2 billion paid in the financial year ended December 31, 2024.  

The 28 firms cut across the banking sector, cement manufacturing, Fast Consumer Moving Goods (FCMG), power companies, Oil & gas, telecommunication, Insurance among other critical sectors of the nation’s economy.

Aside from paying the statutory 30 per cent income tax, companies operating in Nigeria are meant to pay Education tax, National Information Technology Development Agency (NITDA) tax and Nigeria Police Trust Fund levy.

The tertiary education tax is imposed on every Nigerian company at the rate of 2.5 per cent of the assessable profit for each year of assessment, while the Act that established the Nigeria Police Trust Fund was meant to receive funds from a levy of 0.005 per cent of the net profit of companies operating a business in Nigeria and other various sources, which will be utilized for the training and welfare of personnel of the Nigerian Police Force.

The N2.5 trillion tax expenses  in 2025 is an indication that most listed companies are the major contributors to Company Income Tax (CIT) revenue. 

Recently, the National Bureau of Statistics (NBS), revealed that Nigeria’s CIT revenue rose to N2.96 trillion in the third quarter (Q3) of 2025, representing a 6.55 per cent increase from N2.78 trillion recorded in Q2 2025.

The NBS report showed that CIT performance in Q3 2025 was underpinned by contributions from both domestic and foreign sources.

Domestic CIT payments accounted for N1.21 trillion of the total collections, while foreign CIT payments contributed a larger share of N1.75 trillion, reflecting continued profitability among multinational companies and cross-border operations.

THISDAY findings from the listed companies 2025 unaudited/ audited  results released on NGX revealed that MTN Nigeria Communications Plc paid the highest tax expenses, followed by Dangote Cement Plc and Seplat Energy Plc. 

The telecommunication giant saw its tax expenses at N583.18 billion in 2025, up by 289.07 per cent increase over N149.89 billion declared in 2024.  

The company closed 2025 with profit before tax of N1.7 trillion, 408.2 per cent increase over N550.33 billion loss in 2024. 

The Chief Executive Officer, MTN Nigeria Communications, Mr. Karl Toriola, expressed that the company rehabilitation of the 110-km Enugu–Onitsha Expressway under the Road Infrastructure Tax Credit Scheme continues to advance, with additional tax credits secured to offset tax liabilities from 2026. 

“During the period, we paid N878.7 billion in taxes and levies to the government and were recognised by the Nigeria Revenue Service for tax compliance and transparency, demonstrating our track record of sound governance,” he said.  

For Dangote Cement, it declared N517.7 billion tax expenses  in 2025, up by 125.8 per cent increase over N229.29 billion reported in 2024, while Seplat Energy closed 2025 with N513.93 billion tax expenses, representing an increase of 175.12per cent  when compared to N186.8 billion in 2024.  

THISDAY learnt that Cadbury Nigeria Plc, Nestle Nigeria Plc, Nigerian Breweries Plc and International Breweries Plc that had tax credit in 2025 due to foreign exchange losses.

Nestle Nigeria Plc that paid N61.88 billion tax in 2025 had reported N56.99 billion tax credit in 2024, while  International Breweries Plc announced N21.77 billion tax expenses in 2025 from N1.79 billion tax credit in 2024.

In addition, Cadbury Nigeria Plc posted N5.2 billion tax expenses in 2025, as against N6.1 billion tax credit in 2024. 

Analysts expressed the importance of companies remitting taxes to government agencies, stressing on the role played by listing on the Exchange that gives room for companies to be transparent in tax payment to government agencies where they operate.

The Vice-President, Highcap Securities Limited, Mr. David Adnori in a chat with THISDAY hinted that listed companies may be paying more taxes this year, stressing on its importance on shareholders’ return. He expressed that failure to pay tax by listed companies might force the government to shut branches and truncate operations, stating that the tax system in Nigeria must be streamlined to enhance effective remittance in order not to create dispute between the company and the government.

He, however, added that tax remittance is meant to facilitate economic growth and companies must always oblige in promoting remittance, most especially to state governments where they have branches.

According to him, taxes paid by companies are based on laws and regulations, stressing that companies are meant to play by the rules, which has to do with full disclosure.

He explained, “A good number of income that companies generate are exempted from tax. Banks are not meant to pay tax income on treasury Bills, government bonds and agriculture loans. If you take all of those, sometimes you will find out that tax banks are paying effectively on their profit, maybe less compared to manufacturing companies, not that they are not deliberately not paying taxes.”

He stressed the need for banks to come together and make a total tax income contribution to the country’s Gross Domestic Product (GDP).