Kayode Tokede
MTN Nigeria Communications Plc and 27 other blue-chip firms listed on the Nigerian Exchange Limited (NGX) declared an estimated N1.02 trillion income tax expenses in the first quarter (Q1) ended March 31, 2026, representing an increase of 25 per cent when compared to N820.45 billion declared in the corresponding period of 2025.
The firms cut across the financial sector, cement manufacturing companies, Fast Consumer Moving Goods (FCMG), power, Oil & gas, telecommunication, among others.
Aside from paying the statutory 30 per cent income tax, companies operating in Nigeria are meant to pay Education tax, National Information Technology Development Agency (NITDA) tax and Nigeria Police Trust Fund levy.
The tertiary education tax is imposed on every Nigerian company at the rate of 2.5 per cent of the assessable profit for each year of assessment, while the Act that established the Nigeria Police Trust Fund was meant to receive funds from a levy of 0.005 per cent of the net profit of companies operating a business in Nigeria and other various sources, which will be utilized for the training and welfare of personnel of the Nigerian Police Force.
THISDAY analysis of the 28 firms’ unaudited result and accounts for Q1 2026 released on NGX, revealed that MTN Nigeria Communications Plc paid the highest tax expenses, followed by Seplat Energy Plc and Dangote Cement Plc.
The telecommunication company posted N190.92 billion income tax expenses in Q1 2026, about 177 per cent increase over N68.97billion reported in Q1 2026.
THISDAY had reported that MTN Nigeria in 2025 declared N583.18 billion income tax expenses, up by 289.07 per cent from N149.89 billion declared in 2024.
The company, however, closed Q1 2026 with profit before tax of N546.42 billion,169.6 per cent increase over N202.65 billion in Q1 2025.
Seplat Energy posted N176.6 billion income tax expenses in Q1 2026, representing a decline of 36.7 per cent from N279.26billion in Q1 2026 while Dangote Cement announced N100.07 billion income tax expenses in Q1 2026, a decline of 2.6 per cent from N102.73 billion reported in Q1 2025.
Of the 28 companies, eight financial institutions that include Guaranty Trust Holding Company Plc (GTCO), seven others, remitted about N332.51 billion to revenue agencies in the period under review.
This is about 58.9 per cent from N209.25 billion in Q1 2025. GTCO paid the highest income tax expense in the period under review followed by Access Holdings Plc.
GTCO in Q1 2026 declared N84.76billion income tax expenses, which is 100.2 per cent increase over N42.35billion in Q1 2025 while Access Holdings declared N55.67billion income tax expenses in Q1 2026, up by 39 per cent from N40.03billion in Q1 2025.
Despite significant increase in income tax expenses, the companies posted N3.81 trillion profit before tax in Q1 2026, up by nearly 30 per cent from N2.93trillion reported in Q1 2025.
MTN Nigeria led the chart with the highest profit, followed by Zenith Bank Plc.
Analysts expressed the importance of companies remitting taxes to government agencies, stressing on the role played by listing on the Exchange that gives room for companies to be transparent in tax payment to government agencies where they operate.
The Vice-President, Highcap Securities Limited, Mr. David Adnori in a chat with THISDAY said that listed companies may be paying more taxes this year, stressing on its importance on shareholders’ return.
He 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 further that, “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.”
