Kayode Tokede 

The major overhaul of Nigeria’s tax system by the federal government has started to yield fruits as just 20 firms listed on the Nigerian Exchange Limited (NGX) paid a whooping N3.04 trillion as income tax to Nigeria Revenue Service (NRS) and other agencies in first half ended June 30, 2026.

This represents an increase of 79.5 per cent from N1.69 trillion remitted in first half of 2025. 

The firms cut across  banking sector, cement manufacturing, Fast Moving Consumer Goods (FMCG), telecommunication, among other sectors in Nigeria economy.

The standard corporate income tax rate remains 30 per cent, but the reforms by NRS introduced a 4 per cent development levy on assessable profits for companies within scope. This levy replaced several separate federal levies, so the net impact depends on what each company paid previously.  

Nigeria’s tax reforms, particularly the Nigeria Tax Act 2025 and related legislation that took effect on January 1, 2026, have important implications for companies listed on the NGX. 

They affect corporate tax costs, cash flow, dividend capacity, investment decisions, compliance expenses and, potentially, share-price performance.

But expert believe the impact will not be the same for every company. “It will depend on profitability, sector, tax incentives, capital expenditure, financing structure and how effectively each company adapts to the new rules,” said a tax expert.

Meanwhile, analysis of the financial results of the 20 firms showed that Seplat Energy Plc, followed by Aradel Holdings paid the highest tax to revenue agencies in the period under review. 

Seplat Energy in the H1 2026 declared N564.94 billion tax expenses, a 37.2 per cent increase over N411.59 billion  reported in H1 2025, while Aradel Holdings announced  N561.7 billion tax expenses in H1 2026, up by 1150.4 per cent from N44.92billion in H1 2025. 

Seplat in a statement said,  “In accordance with IAS 34: Interim Financial Reporting, income tax expense for the interim period has been determined using the estimated weighted average annual effective income tax rate expected for the full financial year. This estimate is reviewed at each interim reporting date and adjusted, where necessary, to reflect changes in the expected annual tax rate.

“Income tax expense for the group is analysed by Oil segment – Half year ended N533.7 billion (H1 2025: N353.5 billion); 3 months ended N372.9 billion (H1 2025: N97.5 billion) and Gas Segment – Half year ended N31.2 billion (H1 2025: N58.1 billion); 3 months ended N15.4 billion (H1 2025: N34.8 billion).

The company said it has applied the provisions of the Nigeria Tax Act 2025, which became effective in January 2026 and require Education Tax, the NASENI  levy, and the Police Trust Fund Levy to be consolidated into Development Levy.

In the period under review,  MTN Nigeria Communications Plc declared N384.05billion tax income, which is 85 per cent increase over N207.41 billion in  H1 2025.  Dangote Cement announced  N342.85 billion income tax expense in H1 2026, a growth of 63.6 per cent from N209.6billion reported in H1 2025.

Of the N3.04 trillion income tax expense, a total of nine banks remitted N845.79 billion in H1 2026, about 42 per cent increase over N596.79 billion in H1 2025. 

Zenith Bank led eight others with the highest tax income  in the period, announcing  N206.84  billion, about 121.34 per cent increase over N93.45billion in the corresponding period of 2025.  

Following the 121.34 per cent increase in tax income,  Zenith Bank saw its profit dropped by 19.06 per cent to N430.76 billion in H1 2026.  

Analysts expressed the importance of companies remitting taxes to government agencies, stressing that listing on the NGX gives room for companies to be transparent in tax payment to government agencies.

Commenting, Vice-President, Highcap Securities Limited, Mr. David Adnori stated that listed companies may be paying more taxes this year, stressing on its importance on shareholders’ return.

He said 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).