SEVEN NIGERIAN BANKS PAY N392.53BN IN TAXES AMID SOARING PROFITS
Detailed Breakdown:
Seven Nigerian banks have collectively paid N392.53 billion in taxes during the first half of 2024, reflecting a significant rise in their tax obligations. These figures come from their second-quarter financial reports filed with the Nigeria Exchange for the period ending June 30, 2024.
Top Taxpayers:
Guaranty Trust Holdings reported the highest tax payment at N110.90bn, a sharp 292.5% increase compared to N28.17bn in H1 2023.
United Bank for Africa (UBA) followed with N85.22bn, marking a 235.5% rise from N25.41bn.
Access Bank paid N80.89bn, up by 215.4% from N25.64bn in the previous year.
Zenith Bank paid N59.59bn in taxes, a 90% increase from N31.32bn in H1 2023.
Wema Bank saw a tax payment of N3.97bn, reflecting a 48.1% rise from N7.38bn in the previous year.
Fidelity Bank reported N44.03bn, representing a 232% increase from N13.23bn.
First City Monument Bank (FCMB) saw its tax obligation decline by 29%, paying N7.93bn compared to N11.30bn in 2023.
The taxes paid included levies such as corporate tax, minimum tax, information technology tax, tertiary education tax, and the Police Trust Fund levy.
Expert Insights: Financial analysts like Teslim Shitta-Bey and Rotimi Fakeyejo noted that despite the rising tax burdens, banks continue to generate substantial profits. They emphasized that these taxes, while substantial, have not negatively affected shareholder dividends or retained earnings. Analysts described the banks' performance as "unusual profit," especially given the losses suffered by other sectors due to foreign exchange challenges.
Financial expert Olaid Baanu added that the banks' profitability has allowed them to absorb these increased taxes without compromising their financial performance, making it a valuable revenue stream for the government.
Additionally, multinational companies like Google, Netflix, and Facebook paid N2.55tn in taxes to the Federal Government in the same period, reflecting the government's broadened tax net.
The banks' tax expenses reflect their significant role in Nigeria's financial ecosystem, with their strong profits serving as a key source of revenue for the government.
Detailed Breakdown:
Seven Nigerian banks have collectively paid N392.53 billion in taxes during the first half of 2024, reflecting a significant rise in their tax obligations. These figures come from their second-quarter financial reports filed with the Nigeria Exchange for the period ending June 30, 2024.
Top Taxpayers:
Guaranty Trust Holdings reported the highest tax payment at N110.90bn, a sharp 292.5% increase compared to N28.17bn in H1 2023.
United Bank for Africa (UBA) followed with N85.22bn, marking a 235.5% rise from N25.41bn.
Access Bank paid N80.89bn, up by 215.4% from N25.64bn in the previous year.
Zenith Bank paid N59.59bn in taxes, a 90% increase from N31.32bn in H1 2023.
Wema Bank saw a tax payment of N3.97bn, reflecting a 48.1% rise from N7.38bn in the previous year.
Fidelity Bank reported N44.03bn, representing a 232% increase from N13.23bn.
First City Monument Bank (FCMB) saw its tax obligation decline by 29%, paying N7.93bn compared to N11.30bn in 2023.
The taxes paid included levies such as corporate tax, minimum tax, information technology tax, tertiary education tax, and the Police Trust Fund levy.
Expert Insights: Financial analysts like Teslim Shitta-Bey and Rotimi Fakeyejo noted that despite the rising tax burdens, banks continue to generate substantial profits. They emphasized that these taxes, while substantial, have not negatively affected shareholder dividends or retained earnings. Analysts described the banks' performance as "unusual profit," especially given the losses suffered by other sectors due to foreign exchange challenges.
Financial expert Olaid Baanu added that the banks' profitability has allowed them to absorb these increased taxes without compromising their financial performance, making it a valuable revenue stream for the government.
Additionally, multinational companies like Google, Netflix, and Facebook paid N2.55tn in taxes to the Federal Government in the same period, reflecting the government's broadened tax net.
The banks' tax expenses reflect their significant role in Nigeria's financial ecosystem, with their strong profits serving as a key source of revenue for the government.