Nigeria’s leading banks have paid a total of N751.796 billion in income tax to the Federal and State Governments, as well as various agencies, for the 2024 financial year, which concluded on December 31, 2024. This sum represents a substantial 189.9% increase compared to the N395.79 billion paid during the 2023 financial year.
The audited financial statements of the banks, which are listed on the Nigerian Exchange Group (NGX) platform, also reveal that the banks recorded impressive profits during the year.
The banks analysed in the report include Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Fidelity Bank Plc, Stanbic IBTC Holdings Plc, and Wema Bank Plc.
Guaranty Trust Holding Company (GTCO) paid N248 billion in taxes, a significant rise from N69.65 billion paid in 2023. Similarly, Zenith Bank Plc paid N293.956 billion in taxes, up from N119.1 billion the previous year. Fidelity Bank Plc contributed N93.777 billion for the 2024 financial year, compared to N24.806 billion in 2023.
On the other hand, UBA Plc paid N37.15 billion in 2024, a decrease from N149.98 billion paid the previous year. Stanbic IBTC Plc paid N78.485 billion, up from N32.29 billion in 2023, while Wema Bank Plc contributed N16.2 million in taxes, a rise from the N7.675 million paid in the previous year.
The banks categorised the taxes they paid, which included corporate tax, withholding tax on dividend income, education tax, and the National Agency for Science and Engineering Infrastructure (NASENI) IT levy, as well as contributions to the Police Trust Fund, windfall tax, and deferred tax, among others.
Reacting to the significant rise in tax payments, Mr Okechukwu Unegbu, a financial expert and former President of the Chartered Institute of Bankers of Nigeria (CIBN), said the increased tax payments would be beneficial for the government.
Unegbu underscored the importance of getting more companies, particularly state-owned enterprises, to list on the Nigerian Stock Exchange (NSE). He pointed out that Nigeria currently has only around 140 companies listed, whereas countries like the United States and the UK boast thousands of companies on their exchanges.
He lamented the delay in listing the Nigerian National Petroleum Company Limited (NNPCL) on the stock market, an issue that has been a long-standing concern. “It is very disappointing that, instead of more companies being listed, we are seeing companies exiting the stock market. This is harmful to the economy,” Unegbu said. “With only about 140 companies listed, this number is far too low compared to other markets where over 2,000 or even 3,000 companies are listed.”
The financial expert argued that encouraging more companies to list would increase tax revenues and boost government income. He also highlighted that the business climate in Nigeria is not conducive enough to attract new listings, urging the government to take decisive action to improve it.
“We have long recommended that NNPCL should be listed on the stock exchange, but the government has yet to act on this. If they do, it will benefit not only the government but also create opportunities for other companies to follow suit,” Unegbu added.
Another financial expert, Ms Pearl Ogbunobi, also commented on the tax increase, urging the government to channel the funds towards the development of infrastructure and the support of local businesses. “We want to see this significant increase in tax payments reflected in the improvement of our infrastructure,” she stated.
In addition to the tax contributions, reports show that Nigeria’s leading banks posted a total of N3.41 trillion in Profit After Tax (PAT) for the 2024 financial year, compared to N2.1 trillion in 2023. This represents a remarkable 62.38% increase from the previous year’s figure.