Nigeria’s industrial goods firms income tax payments surge 98.9% as profits rise 43.1%

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Read History Go to My Account Log Out Enhanced by Google Companies Nigeria’s industrial goods firms income tax payments surge 98.9% as profits rise 43.1% Nigeria’s listed industrial goods companies increased their income tax payments by 98.88 percent to N271.7 billion in the first nine

Listen to this article Share Nigeria’s listed industrial goods companies increased their income tax payments by 98.88 percent to N271.7 billion in the first nine months of 2026, as stronger profitability across most of the companies boosted their contributions amid the implementation of the country’s new tax laws.

The companies analysed covered 7 out of the 11 companies listed under the NGX Industrial Goods sector.The companies paid a combined N271.7 billion in income taxes in the nine months ended September 2026, compared with N136.6 billion in the corresponding period of 2025, representing a 98.88 percent increase.

This coincided with a 43.07 percent rise in their combined profit before tax to N2.49 trillion from N1.74 trillion in the corresponding period of 2025, reflecting improved profitability across much of the sample.

The companies analysed include Dangote Cement, BUA Cement, HBM Nigeria, Beta Glass, Chemical and Allied Products, Meyer Plc and Berger Paints.

Yvonne Afolabi, a tax expert, said the performance highlights how higher sales, operational efficiencies and improved margins among major manufacturers have strengthened corporate earnings, providing a larger profit base from which taxable income can be generated.

The rise in corporate tax contributions stems from Nigeria’s new tax framework, which took effect on January 1, 2026, to streamline administration, boost compliance, and unify multiple charges.

Under the Nigeria Tax Act 2025, standard corporations face a 30 percent income tax rate while qualifying small businesses remain exempt, alongside revised rules for capital gains.

The legislation also introduces a consolidated 4 percent development levy on assessable profits to replace separate charges like the Tertiary Education, NITDA, NASENI, and Police Trust Fund levies.

Furthermore, large domestic corporations and multinational enterprises meeting specific turnover thresholds are now subject to a 15 percent minimum effective tax rate.

HBM Nigeria recorded the highest income tax payment among the seven companies analysed, at N131.51 billion, representing a 1,154.03 percent increase from N10.49 billion in the corresponding period of 2025.

The cement manufacturer also recorded a 32.28 percent increase in profit before tax to N414.43 billion from N313.29 billion.

Its revenue increased by 18.9 percent to N928.25 billion, while operating profit rose by 28.2 percent to N382.68 billion, supported by higher sales volumes, improved distribution efficiency and cost management.

Lolu Alade-Akinyemi, group managing director and chief executive officer of HBM Nigeria, said the company’s performance reflected sustained volume growth, improved distribution efficiency and disciplined cost management.

“Our 9M 2026 results confirm that we remain firmly on track to deliver our full-year objectives”, he said.

He added that planned maintenance at existing plants moderated third-quarter performance but was expected to strengthen asset reliability and unlock additional production capacity.

Dangote Cement was the second largest contributor to income tax paid by these firms with N97.74 billion, although this recorded a 15.3 percent decline from N115.40 billion paid in the corresponding period of 2025.

The profit before tax however increased significantly by 41. 45 percent to N1.47 trillion, from N1.04 trillion recorded in 2025.

According to the company’s financials, higher tax bill in 2026 was driven by a 41.45 percent surge in pre-tax profits, fueled by lower debt costs and zero FX losses combined with a higher effective tax rate resulting from expired Pioneer tax holidays, Nigeria’s new 4 percent development levy, and non-deductible losses from weaker foreign subsidiaries.

BUA Cement recorded income tax payments of N29.48 billion in the nine months ended September 2026, up from N2.35 billion in the corresponding period of 2025.

Its profit before tax also increased by 64.43 percent to N556.70 billion from N338.57 billion.

Qudus Adebara, a research analyst, said this was driven by improved operating profitability alongside a sharp transition out of a low-tax period, as cash tax payments jumped 1,154.5 percent more than 12-fold while pre-tax profit grew 64.43 percent

He noted that although total income and deferred tax expenses nearly doubled to N93.6 billion alongside higher cash tax settlements, the company easily absorbed the heavier tax burden which was attributed to strong operating cash generation of N304.5 billion.

Beta Glass recorded a 27.07 percent increase in income tax paid to N7.75 billion from N6.10 billion, although its profit before tax declined by 6.64 percent to N37.64 billion from N40.32 billion.

Chemical and Allied Products increased its income tax payments by 132.65 percent to N4.03 billion from N1.73 billion, as profit before tax rose by 20.75 percent to N6.62 billion from N5.49 billion.

Berger Paints recorded a 149.55 percent increase in income tax paid to N1.06 billion from N0.42 billion, while its profit before tax increased by 14.8 percent to N1.68 billion from N1.46 billion.

Meyer Plc also recorded a 14.52 percent increase in income tax paid to N0.16 billion from N0.14 billion, as profit before tax grew by 34.51 percent to N0.70 billion from N0.52 billion.

Kehinde Folorunsho, partner in tax services at Kreston Pedabo, however said the combined effect of the tax reforms could improve manufacturers’ cash flow and profitability, allowing them to reinvest in business expansion, skills development and technology upgrades.

He noted that the reforms are to ease longstanding tax-related pressures on manufacturers, although their benefits would depend on effective implementation.

This suggests that beyond increasing government revenue through improved compliance, the new tax framework helps support business growth and strengthen the profitability of Nigeria’s productive sector.