Ten of Nigeria’s commercial banks have collectively remitted a total of N987.40bn in corporate income tax to the Federal Government for the 2024 financial year, according to their financial statements filed with the Nigeria Exchange Limited.
An analysis of the financial records of leading banks, including Access Holdings, United Bank for Africa (UBA), First HoldCo Plc, Sterling Financial Holdings, Wema Bank, Zenith Bank, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, Fidelity Bank, and FCMB, revealed this combined tax contribution.
Corporate income tax, levied on the profits of companies operating in Nigeria, was paid by the banks in line with the Federal Inland Revenue Service’s tax regulations.
- UBA paid N241.12bn, a 6.07% increase from N227.30bn in 2023.
- Zenith Bank paid N201.62bn, reflecting a massive 468.16% increase from N35.47bn in 2023.
- Access Holdings contributed N159.26bn, up 109.51% from N76.01bn in 2023.
- First HoldCo paid N58.66bn, marking a 108.89% increase from N28.17bn in 2023.
- Sterling Financial Holdings contributed N2.48bn, up 118.45% from N1.13bn in 2023.
- Wema Bank paid N13.27bn, reflecting a 638.73% increase from N1.80bn in 2023.
- GTCO paid N175.03bn, a 205.48% increase from N57.29bn in 2023.
- Stanbic IBTC contributed N35.19bn, up 106.56% from N17.03bn in 2023.
- Fidelity Bank paid N82.42bn, an impressive 306.99% increase from N20.30bn in 2023.
- FCMB paid N18.36bn, reflecting a 101.92% increase from N9.12bn in 2023.
Teslim Shitta-Bey, Chief Economist and Managing Editor of Proshare, explained that the rise in banks’ profits is largely due to the high interest rate environment. “Banks are benefiting from higher returns on investment, particularly from treasury bills and retail lending, as a result of the government’s increased borrowing,” he said.
Shitta-Bey noted that while banks are thriving, the focus on government securities has reduced the availability of funds for private sector credit. He warned that this redirection of funds may impact private investment, creating a mixed outlook for the wider economy.
