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Dangote Cement Plc, the largest producer of the building material in Africa’s most populous nation, has paid N166.1 billion in income tax as of December 2023, which is more than the N124.40 billion internally generated (IGR) of the Federal Capital Territory (FCT).
The income tax expense is calculated at 30 percent of taxable profit.
It should be noted that FCT ranked third in IGR behind Lagos State, (N651.20 billion) and Rivers State, (N172.08 billion) as at 2022, according to data from the National Bureau of Statistics (NBS) as reported by the Vanguard Newspaper.
Interestingly, the 2023 N166.1 billion tax paid by the most capitalised firm in the country is 10 percent higher than 2022’s N150.77 billion.
Tax on corporate profits is defined as taxes levied on the net profits (gross income minus allowable tax reliefs) of enterprises. It also covers taxes levied on the capital gains of enterprises. This indicator relates to the government as a whole (all government levels) and is measured in percentage both of GDP and of total taxation.
Consistent tax payment means Dangote Cement is meeting its financial obligations to the government who needs this money to fund infrastructure.
The cement maker has never failed in making such payment as it has remained profitable since it was incorporated and shareholders have been receiving their dividends from distributable profit.
Investors crave for the stock of a company that has enough financial strength to meet its obligations and pay a dividend.
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