Nigeria's banking sector has demonstrated remarkable fiscal responsibility, with seven leading financial institutions collectively remitting a staggering N674.68 billion in taxes to the federal government during the first half of 2025. This represents a significant 14.69% increase compared to the N588.25 billion paid during the same period in 2024, highlighting the sector's growing contribution to national development.
Top Taxpayers: Ecobank and GTCO Lead the Pack
Ecobank Transnational Incorporated emerged as the highest taxpayer among the seven banks, remitting N186.35 billion in income tax during the first six months of 2025. This impressive figure marks a substantial 41% increase from the N132.49 billion the bank paid in the corresponding period of 2024, reflecting its strong financial performance and expanded operations across Africa.
Close behind was Guaranty Trust Holding Company (GTCO), which recorded a total tax expense of N151.89 billion, up significantly from N98.21 billion in 2024. The bank's increased tax contribution was driven by multiple factors, including a rise in company income tax to N122.66 billion, education tax of N8.95 billion, and various sector-specific levies. These additional contributions included N7.2 billion for the Financial Sector Clean-up Levy and National Fiscal Stabilisation Levy, plus N4.26 billion to the National Information Technology Development Fund and N1.06 billion to the National Agency for Science and Engineering Infrastructure.
Comprehensive Breakdown of Bank Tax Performances
Access Holdings Plc demonstrated robust growth in its tax payments, recording a tax expense of N104.66 billion compared to N67.6 billion in 2024. This increase was primarily fueled by higher corporate income tax, which jumped from N59.7 billion to N86.3 billion, along with other regulatory levies including minimum tax and information technology tax. The bank also reported deferred tax expenses of 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, down from N149.03 billion a year earlier. This decline was largely attributed to a significant reduction in deferred tax expenses, which dropped dramatically from N89.4 billion to N1.4 billion, indicating improved tax efficiency. However, the bank's current income tax actually increased 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, showing a decrease from N85.22 billion in 2024. The reduction 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 recognizing income and expenses across its extensive African subsidiaries network.
First HoldCo Plc posted a tax expense of N72.38 billion, marking a substantial 40% increase from N51.73 billion in the same period of 2024. The rise directly reflected stronger group profitability across its diverse subsidiaries, showcasing the company's expanding financial footprint.
Wema Bank Plc recorded the most dramatic percentage increase in its tax expense, which surged to N13.07 billion from N3.97 billion in 2024. This remarkable growth demonstrates the bank's notable earnings improvement and enhanced compliance with fiscal obligations.
Sector Resilience and Economic Implications
The collective increase in tax payments underscores the banking sector's resilience amid Nigeria's challenging economic environment. Financial analysts note that while some institutions recorded declines due to deferred tax adjustments, the overall upward trend reflects improved profitability and strict adherence to fiscal responsibilities.
The substantial tax contributions come at a crucial time for Nigeria's economy, providing much-needed revenue for government projects and developmental initiatives. The N674.68 billion remittance represents significant support for national economic stability and demonstrates the critical role financial institutions play in nation-building.
Industry experts anticipate that as the financial sector continues to expand its earnings base and regulatory frameworks evolve, banks' contributions to Nigeria's tax revenue will remain strong. This trend reinforces their pivotal position in supporting economic development and fiscal sustainability.
The performance of these seven banking giants serves as a positive indicator for Nigeria's financial health, suggesting that despite economic headwinds, the sector continues to generate substantial value and fulfill its obligations to stakeholders and the nation at large.
