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MTN, Dangote, Seplat, Ecobank Top List Of Tax Payers In Nigeria

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According to Nigerian Exchange Limited (NGX), Dangote Cement Plc, followed by MTN Nigeria Plc, Seplat Petroleum Plc, and Ecobank Transnational Incorporated (ETI) led other firms in tax remittance to the Nigerian government.                                                                                                     

A total of 18 companies operating in Nigeria and other African countries have remitted N330.9 billion to revenue agencies in the first half (H1) of 2022.

Interestingly, this was an increase of 35 per cent to N245.18 billion which was reported in the first half of 2021.

The report shows that Dangote Cement reported N92.79billion tax expenses in H1 2022, an increase of 3.5 per cent from N89.6billion reported in H1 2021, while MTN Nigeria’s announced about 18.7 per cent increase in tax expenses to N87.01billion in H1 2022 from N73.3billion reported in H1 2021.

Commenting on the tax rate, the CEO, of MTN Nigeria, Karl Toriola in a statement explained that the tax paid was on investments in government securities following the expiration of the 10-year tax exemption period, and the education tax rate increased to 2.5 per cent.

However, Seplat petroleum reported N51.85billion tax expenses in H1 2022 from N10.12billion reported in H1 2021, while Total energies Marketing Nigeria reported N4.2billion tax expenses in H1 2022, representing an increase of 13.22 per cent from N3.71billion reported in H1 2022.

In the banking sector, Ecobank Transnational Incorporated reported N13.75billion tax expenses in Q1 2022 from N10.34billion in Q1 2021, as FBN Holdings in its unaudited financial statement announced N9.12billion tax expenses in H1 2022 from N7.15billion reported in H1 2021.

Experts had attributed growth in tax expenses to pending tax accrued by these companies, stressing that a significant increase in profit also drives growth in tax expenses in the period under review.

Analyst at PAC Holdings, Mr. Wole Adeyeye noted that aggressive growth in profit before tax impacted listed companies’ tax expenses, stressing that the increased business activities post-covid-19 boost companies’ revenue drives.

According to him, “the likes of Dangote cement, MTN Nigeria and Nigerian Breweries grew revenue that impacted on profit before tax. When a company reports growth in profit before tax, it is expected to reflect on tax expenses.”

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