Seven major Nigerian banks collectively paid N674.68 billion in taxes to the federal government during the first half of 2025, a 14.69% increase compared to the N588.25 billion remitted in the same period of 2024.

An analysis of the financial statements of Ecobank Transnational Incorporated, Guaranty Trust Holding Company (GTCO), Access Holdings Plc, Zenith Bank Plc, United Bank for Africa (UBA), First HoldCo Plc, and Wema Bank Plc posted on the NGX revealed that the upward movement in tax payments was largely influenced by improved earnings, regulatory levies, and deferred tax adjustments.

According to Investopedia, a tax expense represents the amount a company owes to federal, state, or local governments within a given financial period, typically a year.

Breakdown of bank-specific tax performance

Ecobank Transnational Incorporated emerged as the top tax-paying institution, remitting N186.35 billion in income tax in the first half of 2025, a 41% increase from N132.49 billion in the same period last year.

Guaranty Trust Holding Company (GTCO) followed closely with a total tax expense of N151.89 billion, up from N98.21 billion in 2024.

The sharp increase was driven by a rise in company income tax to N122.66 billion, education tax of N8.95 billion, and additional sector-specific levies, including the Financial Sector Clean-up Levy and National Fiscal Stabilisation Levy, which together amounted to N7.2 billion.

GTCO also contributed N4.26 billion to the National Information Technology Development Fund (NITDF) and N1.06 billion to the National Agency for Science and Engineering Infrastructure (NASENI).

Access Holdings Plc recorded a tax expense of N104.66 billion, rising from N67.6 billion in 2024.

This growth was primarily due to an increase in corporate income tax from N59.7 billion to N86.3 billion, along with other levies such as the minimum tax and information technology tax.

Deferred tax expenses also contributed N8.39 billion, reflecting adjustments for asset revaluation and regulatory provisions.

In contrast, Zenith Bank Plc reported a lower tax expense of N93.45 billion in June 2025, compared to N149.03 billion a year earlier.

The decline was largely attributed to a steep reduction in deferred tax expenses, from N89.4 billion to N1.4 billion, signalling improved tax efficiency.

However, the current income tax rose to N92 billion from N59.6 billion, reflecting stronger pre-tax earnings.

United Bank for Africa (UBA) Plc paid N52.88 billion in taxes during the period, a decline from N85.22 billion in 2024.

The drop was mainly due to a N34.37 billion deferred tax credit, which offset a current tax charge of N87.25 billion.

This adjustment was linked to timing differences in recognising income and expenses across its African subsidiaries.

First HoldCo Plc posted a tax expense of N72.38 billion, marking a 40% increase from N51.73 billion in the same period of 2024.

The rise reflected stronger group profitability across its subsidiaries.

Similarly, Wema Bank Plc recorded a sharp increase in its tax expense to N13.07 billion, up from N3.97 billion in 2024, demonstrating notable earnings growth and compliance improvements.

Banks' increased remittance reflects stronger earnings

The significant rise in tax payments across Nigeria’s leading banks underscores the resilience of the financial sector amid a challenging economic environment.

While some institutions recorded declines due to deferred tax adjustments, the overall upward trend reflects improved profitability and adherence to fiscal obligations.

As the financial sector continues to expand its earnings base and regulatory frameworks evolve, analysts expect the contribution of banks to Nigeria’s tax revenue to remain strong, reinforcing their pivotal role in national economic stability and development.