Banks’ Tax Payments Rise to ₦674.68bn in First Half of 2025 Amid Stronger Earnings

Seven major Nigerian banks collectively paid a total of ₦674.68 billion in taxes to the Federal Government in the first half of 2025, marking a 14.69 per cent increase compared to ₦588.25 billion paid during the same period in 2024.

An analysis of the financial statements of Ecobank Transnational Incorporated, Guaranty Trust Holding Company (GTCO), Access Holdings, Zenith Bank, United Bank for Africa (UBA), First HoldCo, and Wema Bank revealed that the tax variations were largely influenced by earnings growth, regulatory levies, and changes in deferred tax obligations.

According to financial data reviewed by The PUNCH, Ecobank emerged as the top taxpayer, remitting ₦186.35 billion in the first half of 2025 — a 41 per cent increase from ₦132.49 billion in the corresponding period of 2024.

GTCO followed with ₦151.89 billion in total tax expenses, up sharply from ₦98.21 billion in 2024. The surge was attributed to higher company income tax payments of ₦122.66 billion, education tax of ₦8.95 billion, and several sector-specific levies, including the Financial Sector Clean-up Levy and National Fiscal Stabilisation Levy, which jointly accounted for ₦7.2 billion. The group also paid ₦4.26 billion to the National Information Technology Development Fund (NITDEF) and ₦1.06 billion to the National Agency for Science and Engineering Infrastructure (NASENI).

Access Holdings Plc recorded a tax expense of ₦104.66 billion, up from ₦67.6 billion in 2024, driven by higher corporate income tax of ₦86.3 billion and additional levies such as the minimum tax and IT tax. Deferred tax expenses contributed ₦8.39 billion, reflecting adjustments for asset revaluation and regulatory provisions.

Conversely, Zenith Bank Plc saw its tax expenses drop to ₦93.45 billion from ₦149.03 billion in 2024. The decline was primarily due to a fall in deferred tax from ₦89.4 billion to ₦1.4 billion, although current income tax increased to ₦92 billion, reflecting stronger pre-tax earnings.

UBA Plc paid ₦52.88 billion in taxes in the first half of 2025, down from ₦85.22 billion a year earlier. The decline was mainly due to a ₦34.37 billion deferred tax credit, which offset its current tax charge of ₦87.25 billion, stemming from timing differences across its African operations.

First HoldCo Plc posted a ₦72.38 billion tax expense in the same period, up 40 per cent from ₦51.73 billion in 2024, driven by higher group profits.

Wema Bank Plc, the smallest among the group, recorded a notable surge in tax payments — ₦13.07 billion in the first half of 2025, compared to ₦3.97 billion in the same period last year.

The increase in total tax payments reflects both stronger earnings across the banking sector and heightened regulatory obligations imposed on financial institutions in Nigeria.