Six major Nigerian banks collectively paid a total of N751.8 billion in income tax to the Federal and State Governments for the 2024 financial year. This marks a significant 189.9% increase compared to the N395.79 billion paid in 2023.
The financial statements of these banks, as reviewed on the Nigerian Exchange Group (NGX) platform, also indicate a rise in profits. The banks analyzed 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.
GTCO recorded a major increase, paying N248 billion in 2024 compared to N69.65 billion in 2023. Zenith Bank paid the highest amount, with N293.96 billion in taxes, a jump from N119.1 billion in the previous year.
Fidelity Bank paid N93.78 billion, up from N24.8 billion in 2023.
Stanbic IBTC Plc paid N78.49 billion, an increase from N32.29 billion in the previous year.
UBA Plc, however, saw a decline, paying N37.15 billion in 2024 compared to N149.98 billion in 2023.
Wema Bank Plc paid N16.2 million, up from N7.67 million in 2023.
The banks noted that the taxes paid included corporate tax, withholding tax on dividend income, education tax, Information Technology (IT) levy, Police Trust Fund levy, windfall tax, and deferred tax.
A former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Okechukwu Unegbu, noted that the increase in tax revenue would benefit the government. He urged the government to encourage more companies, especially state-owned enterprises, to list on the Nigerian Stock Exchange to boost economic growth.
“It is so sad that rather than more companies listing at the stock market, they are exiting the market and it is not good for the economy,” Unegbu said.
He pointed out that Nigeria has only about 140 companies listed, whereas other countries have over 3,000 companies in their stock markets. He urged the government to list Nigeria National Petroleum Company Limited (NNPCL) on the stock exchange, stating that it would encourage private firms to do the same.
Financial expert Ms. Pearl Ogbunobi called on the government to ensure that the tax revenue is used for infrastructure development and to support local businesses.
“We want to see the huge tax reflect on our infrastructures,” she said.
Despite the rise in taxes, the six banks also recorded N3.41 trillion in Profit After Tax (PAT) for 2024, an increase from N2.1 trillion in 2023. This represents a 62.38% growth, indicating strong financial performance in the banking sector.
