The Dangote Group, one of Nigeria’s largest companies and a major contributor to the country’s economy, revealed on Thursday that its various subsidiaries have contributed N474 billion in taxes to the federal government over the past three years.

This announcement was made by Hashem Ahmed, a representative of the Dangote Group, during the commencement of the 18th Abuja International Trade Fair (AITF) on the same day.

The AITF, set to take place from September 28 to October 9, 2023 is a prestigious multi-sectoral gathering in Nigeria that offers domestic and international exhibitors a platform to showcase new products, access untapped markets, forge valuable business relationships and stay ahead of emerging trends in Africa.

During the event, Mr. Ahmed conveyed his company’s best wishes and emphasized that, in addition to being the largest employer in the private sector, the Dangote Group also holds the distinction of being the leading contributor to tax revenue.

“As you may be aware that apart from being the highest employer of labour in the private sector, the Dangote Group is also the biggest taxpayer,”

“In just three years, Dangote subsidiaries paid a staggering N474 billion to the Federal Government. These are Dangote Sugar, Dangote Cement and Dangote Salt, combined,” he said.

He explained that this corridor of sustained financial support by the Dangote Group is in addition to several empowerment/skill acquisition programmes, Corporate Social Responsibility programmes, sponsorship and philanthropic schemes, running into several billions of naira.

He said the group was also pleased that the new government under the leadership of President Bola Ahmed Tinubu is pursuing a tax reform policy that would help expand the tax net and provide the necessary financing for the development of the country’s infrastructures, which will serve as the bedrock for the much-touted industrial takeoff in Nigeria.

In 2022, Nigeria collected N2.83 trillion ($6.175 billion) in company income tax (CIT) in 2022, a 116% increase from the previous year.

Nevertheless, Nigeria’s tax system currently operates with notable inefficiencies. The country maintains one of the lowest tax collection rates globally and is striving to boost its revenue amid the challenge of mounting debt.

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The new tax system, aims to shift a greater portion of the tax burden onto wealthy citizens while cutting corporate taxes, and it is one of the numerous broader economic reforms President Bola Tinubu is undergoing to revitalise Nigeria’s ailing economy.

The central goal is to lift the country’s tax take to 18% of gross domestic product within three years from 11% now.