Tax Reforms and Performance of Business Firms in Akwa Ibom State, Nigeria

Ben; Isaiah Peter

doi:10.56201/ijebm.vol.11.no9.2025.pg365.379

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Tax Reforms and Performance of Business Firms in Akwa Ibom State, Nigeria

Ben, Isaiah Peter

Abstract

The study examined the effect of tax reform and performance of business firms in Akwa Ibom State of Nigeria. Three research questions were raised to guide the study. The performance of business firms was measured by the growth of the economy using the country’s GDP. Therefore, data on GDP, Company income tax and personal income tax were time series data for twenty (23) years pooled from Nigeria Statistical bulletin (2024). A survey was also conducted in two hundred (200) businesses in Uyo metropolis to assess the opinion of the business managers on the current tax regime. The data collated were analyzed using the ordinary least square (OLS) regression technique and descriptive statistics. The results showed that there is relationship between the taxation indicators and the economic growth. The correlation coefficient is 0.858 which is very high with adjusted R2 of 0.709 which implies that 70.9 % of the variation in economic growth is explained by company and personal income tax in Nigeria. This suggests that the country cannot do without taxation. This indicates that company income tax has positive effect and had affected economic growth statistically over the years, having t- statistics of 6.732 with p-value less than 5% level of significance. The result also revealed that a unit increase in personal income tax revenue will decrease economic growth by 1.506E-006 coefficient. On the performance of business firms, the survey showed that it has not been easy with business operators in recent time due to tax increment and multiple taxation. It was concluded that there is a positive and significant effect of company income tax on economic growth in Nigeria while personal income tax in its current form or implementation, may not be an important driver of economic growth in the country. The study provided among others that Nigerian government should implement targeted tax incentives and deductions for industries that drive innovatio

Keywords

Tax ReformPerformanceBusiness Firm

References

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Tax Reforms and Performance of Business Firms in Akwa Ibom State, Nigeria

Abstract

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