FMCG firms see sharp rise in tax payments as new regime bites
Eight of Nigeria’s largest consumer goods companies have seen their combined income tax payments surge significantly. The total tax paid reached N190.66bn in the first half of 2026, marking a 53% increase from the same period in 2025. The jump in tax outpaced profit growth for the sector, with some companies facing much higher effective tax rates. Analysts attribute the spike to Nigeria’s revised tax regime and company-specific tax factors.
TLDR
- The eight FMCG firms, including Nestlé Nigeria, Nigerian Breweries, and Dangote Sugar Refinery, paid a total of N190.66bn in income tax in the first half of 2026, up from N124.59bn in the first half of 2025.
- The sector’s blended effective tax rate rose from 38.3% in the first half of 2025 to 39.4% in the first half of 2026.
- The revised tax regime, effective from January 2026, introduced a four per cent Development Levy and a 30% corporate income tax rate.
- International Breweries saw the steepest increase in effective tax rate, while Champion Breweries benefited from a tax credit.
- Analysts say higher tax payments are due to both the new tax law and company-specific factors, and expect the pace of increase to moderate in the future.
