Eko Plastics Limited, a manufacturer in Lagos, recorded total taxable profits of ₦85,000,000 for the year ended 31 December 2023. The company has been in operation for twelve years. What is the Companies Income Tax (CIT) liability under the Companies Income Tax Act (CITA) Cap C21 LFN 2004 (as amended)?

Under CITA (as amended by the Finance Acts), companies with turnover above ₦100 million are taxed at 30%; however, the question specifies taxable profit of ₦85,000,000. Since the company has been in operation for over four years and the taxable profit (not turnover) is ₦85,000,000, the applicable rate for a medium/large company is 30%. CIT = ₦85,000,000 × 30% = ₦25,500,000. The company does not qualify for the small company 0% rate (turnover ≤ ₦25m) or medium company 20% rate (turnover ₦25m–₦100m) as the question context places it in the large company bracket.