MTN Nigeria Communications Plc and 27 other blue-chip companies listed on the Nigerian Exchange Limited (NGX) recorded a combined income tax expense of about N1.02 trillion in the first quarter ended March 31, 2026, representing a 25 per cent increase compared to N820.45 billion in the same period of 2025.
The companies span various sectors, including banking, cement manufacturing, fast-moving consumer goods (FMCG), power, oil and gas, and telecommunications.
Beyond the statutory 30 per cent corporate income tax, companies in Nigeria are also required to pay additional levies such as the Education Tax, National Information Technology Development Agency (NITDA) levy, and the Nigeria Police Trust Fund levy.
The education tax is charged at 2.5 per cent of assessable profit annually, while the Police Trust Fund levy is set at 0.005 per cent of companies’ net profits to support the training and welfare of police personnel.
An analysis of the 28 firms’ unaudited Q1 2026 financial statements filed with the NGX showed that MTN Nigeria recorded the highest tax expense, followed by Seplat Energy Plc and Dangote Cement Plc.
MTN Nigeria reported N190.92 billion in income tax expenses for Q1 2026, representing a 177 per cent increase from N68.97 billion in the corresponding period of 2025. The company had earlier reported N583.18 billion in income tax expenses for the full year 2025, up 289.07 per cent from N149.89 billion in 2024. It also posted a profit before tax of N546.42 billion in Q1 2026, a 169.6 per cent increase from N202.65 billion in Q1 2025.
Seplat Energy recorded N176.6 billion in income tax expenses in Q1 2026, reflecting a 36.7 per cent decline from the previous year, while Dangote Cement reported N100.07 billion, a slight drop of 2.6 per cent from N102.73 billion in Q1 2025.
Among the 28 firms, eight financial institutions, including Guaranty Trust Holding Company Plc (GTCO) and others, paid a combined N332.51 billion in taxes during the period, representing a 58.9 per cent increase from N209.25 billion in Q1 2025. GTCO recorded the highest tax payment among the banks, followed by Access Holdings Plc.
GTCO posted N84.76 billion in income tax expenses in Q1 2026, a 100.2 per cent increase from N42.35 billion in Q1 2025, while Access Holdings reported N55.67 billion, up 39 per cent from N40.03 billion.
Despite the rise in tax obligations, the companies collectively recorded a profit before tax of N3.81 trillion in Q1 2026, nearly 30 per cent higher than the N2.93 trillion reported in Q1 2025. MTN Nigeria led in profitability, followed by Zenith Bank Plc.
Market analysts emphasised the importance of tax compliance by listed companies, noting that transparency requirements on the Exchange encourage proper remittance to government agencies.
The Vice-President of Highcap Securities Limited, Mr. David Adnori, noted that increased tax payments could impact shareholders’ returns but remain essential for economic growth. He added that companies must continue to comply with tax regulations, particularly in states where they operate.
Adnori further explained that certain income streams, such as earnings from treasury bills, government bonds and agricultural loans, are tax-exempt, which can result in banks having lower effective tax burdens compared to manufacturing firms, without implying non-compliance.