Dangote Cement, MTN pay highest income tax to FG in 2020

Dangote Cement Plc has emerged as the highest corporate income taxpayer and the biggest employer of labor for the country for 2020.

On the Nigerian Exchange (NGX), a leading indigenous cement producer ranked first with a hefty N97.24billion in federal government taxes paid. In contrast, MTN Communication Nigeria Plc paid N93.6billion, and Guaranty Trust Bank came in third with an income tax of N36.66billion in the year.

When it comes to the total number of employees, Cement Company, with operations in various African countries, came out on top with a total of 16,199 staffers on its payroll as of performance review.

The reputed business journal “Next Money” conducted performance studies on 100 of Nigeria’s top elite corporate bodies and found that Dangote Cement was the country’s most well-capitalized corporation with N4,173.22 billion.

Publishing Next Money’s Ray Echebiri said the performance index research of the Exchange’s 150 publicly traded companies aimed to determine which were the greatest performers.

Renowned financial expert Echebiri noted that the project’s goal was to provide current and potential investors with information on which they could trust when making investment choices.

“The first step we take in the analyses is to extract the Total Assets of each of the listed companies from their audited accounts.”

Top 10 tax payers

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He said:

“We sorted the total assets of the companies from the largest to the smallest and cut off at the 100th. We tagged the hundred companies that emerged from this exercise “Nigeria’s Top 100 Companies”. Any company that makes it to the corporate elite club of Nigeria’s Top 100 Companies is automatically a candidate for further ranking by Revenues, Profits, Market Capitalization, Number of Employees and Tax Payment.”

According to him,

The rankings show how the listed companies stand on the corporate ladder with regard to the various performance indices. This edition of Nigeria’s Top 100 Companies covers the 2020 accounting year. It is therefore, a performance analyses of companies listed on the Nigerian Exchange (NGX) based on their audited accounts for the 2020 reporting year.”

“In other words, the information used in the analyses are extracted from the annual reports and accounts of the various companies published in 2020 irrespective of whether a company’s year-end is March, June, September, December, or any other month in 2020.”

Echebiri further pointed out that the analyses were restricted to publicly-held companies in the country and the reason being that the accounts of listed companies are easier to access than those of private companies.

“Moreover, accounts of publicly-held companies are more believable because they are usually subjected to regulatory scrutiny and approval.”

When asked if any private corporations might easily be included in the top 100 in terms of size, revenue, and profitability, he replied that his organization was confident there were enough. However, he said that they were excluded from the evaluation and analysis of performance since their audited statements were not subject to the same regulatory investigation and approval as those of publicly-held firms and were, as a result, less credible.

Dangote Cement was the largest employer of labour, but Julius Berger was close behind with 12,217 employees, and United Bank for Africa Plc employed 10,824 individuals.

Despite Dangote cement’s N4,173.22 billion market capitalization, the data shows that MTN Communications Nigeria Plc and Bua Cement Plc had market capitalizations N3,458.23 billion and N2,619.41 respectively as of December 31, 2020, came in second and third place, respectively.

MTN Communications Nigeria Plc, which paid N93.66 billion in corporate income tax, came in second, with Guaranty Trust Bank, which paid N36.66 billion in corporate income tax, the third most.

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