Seven Nigerian banks collectively paid N674.68bn in taxes to the government in the first half of 2025, representing a 14.69 per cent increase from N588.25bn recorded in the same period of 2024.
An analysis of the financial statements of seven leading financial institutions by The PUNCH, Ecobank, Guaranty Trust Holding Company, Access Holdings, Zenith Bank, United Bank for Africa, First HoldCo, and Wema Bank, showed varying tax movements influenced by earnings growth and regulatory levies.
According to Investopedia, a tax expense is a liability owed to a federal, state, or local government within a given period, typically over the course of a year.
Ecobank Transnational Incorporated emerged as the highest tax-paying institution, with N186.35bn in income tax for the first half of 2025, up 41 per cent from N132.49bn in 2024.
Guaranty Trust Holding Company followed with N151.89bn in total tax expenses, a sharp rise from N98.21bn in the same period last year. The growth stemmed from higher company income tax of N122.66bn, education tax of N8.95bn, and additional sector levies such as the Financial Sector Clean-up Levy and the National Fiscal Stabilisation Levy, which jointly added N7.2bn. The group also paid N4.26bn to the National Information Technology Development Fund and N1.06bn to the National Agency for Science and Engineering Infrastructure.
Access Holdings Plc recorded a tax expense of N104.66bn, up from N67.6bn in 2024. The increase was driven by a rise in corporate income tax from N59.7bn to N86.3bn, coupled with additional levies including minimum tax and information technology tax. Deferred tax expenses also contributed N8.39bn, reflecting adjustments for temporary differences in asset revaluation and regulatory provisions.
In contrast, Zenith Bank Plc reported a lower tax expense of N93.45bn in June 2025, down from N149.03bn in the previous year. The reduction was largely due to a sharp drop in deferred tax expenses from N89.4bn to N1.4bn, indicating improved tax efficiency. However, current income tax rose to N92bn from N59.6bn, driven by higher earnings before tax.
United Bank for Africa Plc paid N52.88bn in taxes in the first half of 2025, a decline from N85.22bn in 2024. The fall was attributed to a N34.37bn deferred tax credit, which offset the current tax charge of N87.25bn, as the bank benefited from timing differences in recognising expenses and gains across its African operations.
First HoldCo Plc reported a tax expense of N72.38bn in the first half of 2025, representing a 40 per cent rise from N51.73bn in the corresponding period of 2024, driven by higher group earnings. Also, Wema Bank Plc recorded a tax expense of N13.07bn in the first half of 2025, rising sharply from N3.97bn in the corresponding period of 2024.
