IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 12 2023
DOI: https://doi.org/10.56201/jafm.v9.no12.2023.pg139.150

---

Effect of Company Income Tax on Economic Growth in Nigeria

Fineboy Ikechi Joseph , Kelechi Calistus Nwankwo , Chidi Ubani Ezebunwa, Obioma Mannaseh Omeonu Crystalbel Chizaram Okechukwu

---

Abstract

The study investigates the effect of company income tax revenue on economic growth of Nigeria using data from 1980 to 2022 covering a study period of 42 years. The study used the ex post facto research design. Data for the study is analysed using the multivariate regression technique. The study found that company income tax revenue has a significant effect on gross domestic product, foreign direct investment, and per capita income in Nigeria. Thus, it is recommended that, Nigerian government must improve expenditure on capital items so as to encourage production within the economy to burst both the GDP and provide avenue for the government to raise more company income tax revenue. Also, in a bid to improve per capita income in Nigeria, the government must spend more of the earned tax revenue on infrastructures and create avenue for manufacturing activities to be carried out. This will provide more jobs for citizens and increase the per capita income in Nigeria. Lastly, the current tax revenue has a significant effect on foreign direct investment because its reforms and administration are attractive to foreign investors. The government should make tax reform that is attractive to foreign investor through more tax allowance on capital goods and allocating more tax-free zones for companies.

keywords:

Company Income Tax, Gross Domestic Product, Foreign Direct Investment, Per

---

References:

Arnold, J.M. (2011). Tax Policy for Economic Recovery and Growth. Econ. J., 121:59-80.

Appah, E., (2010). The Problems of Tax Planning and Administration in Nigeria: The Federal
and State Governments Experience. Asian Journal of Research Banking and Finance,
4(12), 1-14.
Ayeni, A. P., Ibrahim, J. and Adeyemi, A. O. (2017). Tax Revenue and Nigerian Economic
Growth. European Journal of Accounting, Auditing and Finance Research, Vol.5,
No.11, pp.75-85.
Anyanduba, J.O. (1999). Companies Income Taxation in Nigeria. Benin- City: United City
Press.

Adereti, S.A., Sanni, M.R., and Adesina, J.A. (2011). Value added tax and economic growth of
Nigeria. European Journal of Humanities and social Sciences 10(1).

DOWNLOAD PDF

---

Back