N3.8 trillion profit and N1.02 trillion tax expense reported by 27 blue‑chip companies in Q1.

Kayode Tokede

MTN Nigeria Communications Plc and 27 other blue‑chip firms listed on the Nigerian Exchange Limited (NGX) reported an estimated income tax expense of N1.02 trillion for the first quarter (Q1) ended 31 March 2026, a 25 percent rise over the N820.45 billion declared for the same period in 2025.

The firms span the financial sector, cement manufacturing, fast‑moving consumer goods (FMCG), power, oil & gas, telecommunications and other industries.

In addition to the statutory 30 percent income tax, Nigerian companies must also pay an education tax, a National Information Technology Development Agency (NITDA) tax and a Nigeria Police Trust Fund levy.

The education tax is levied at 2.5 percent of assessable profit each year. The Nigeria Police Trust Fund receives a 0.005 percent levy on net profit from companies operating in Nigeria, with the funds earmarked for training and welfare of police personnel.

THISDAY’s analysis of the 28 firms’ unaudited Q1 2026 results, released on NGX, shows that MTN Nigeria Communications Plc incurred the highest tax expense, followed by Seplat Energy Plc and Dangote Cement Plc.

The telecommunications company reported N190.92 billion in income tax for Q1 2026, a 177 percent increase over the N68.97 billion recorded in Q1 2025.

THISDAY previously reported that MTN Nigeria declared N583.18 billion in income tax in 2025, up 289.07 percent from N149.89 billion in 2024. The company closed Q1 2026 with a profit before tax of N546.42 billion, a 169.6 percent rise over N202.65 billion in Q1 2025.

Seplat Energy posted N176.6 billion in income tax for Q1 2026, a 36.7 percent decline from N279.26 billion in Q1 2025. Dangote Cement announced N100.07 billion in income tax for Q1 2026, down 2.6 percent from N102.73 billion in Q1 2025.

Among the 28 companies, eight financial institutions—including Guaranty Trust Holding Company Plc (GTCO) and seven others—remitted about N332.51 billion to revenue agencies during the period, representing 58.9 percent of the N209.25 billion paid in Q1 2025. GTCO paid the highest income tax expense in the period, followed by Access Holdings Plc.

GTCO declared N84.76 billion in income tax for Q1 2026, a 100.2 percent increase over N42.35 billion in Q1 2025. Access Holdings reported N55.67 billion in income tax for Q1 2026, up 39 percent from N40.03 billion in Q1 2025.

Despite the significant rise in income tax expenses, the companies posted a combined profit before tax of N3.81 trillion for Q1 2026, up nearly 30 percent from N2.93 trillion in Q1 2025.

MTN Nigeria led the chart with the highest profit, followed by Zenith Bank Plc.

Analysts highlighted the importance of companies remitting taxes to government agencies, noting that listing on the exchange promotes transparency in tax payments.

David Adnori, Vice‑President of Highcap Securities Limited, told THISDAY that listed companies may be paying more taxes this year, emphasizing the impact on shareholder returns.

He added that tax remittance supports economic growth and that companies must comply with laws and regulations, ensuring full disclosure.

Adnori explained, “A good portion of the income that companies generate is exempt from tax. Banks, for example, do not pay income tax on treasury bills, government bonds and agricultural loans. When you consider those exemptions, banks may effectively pay less tax on their profit compared to manufacturing companies, not because they are deliberately evading taxes.”