Effect of Asset and Sustainable Growth on Income Tax Compliance Among Listed Manufacturing Companies in Nigeria

Tax compliance is a problem in the African region because of the prevalence of informal economies, tax avoidance practices and ineffective tax administration systems. The principal aim of the study is to determine the influence of Asset and Sustainable Growth on Income Tax Compliance of Listed Manufacturing Companies in Nigeria. The Study adopted an ex-post factor research design within the framework of a positivist research philosophy. The population of the study consisted of 57 listed manufacturers in Nigeria. A purposive sampling approach was adopted to select companies that had complete financial reports for the period under review (2014 to 2024), hence the sample size of 48 firms. Secondary data was used in the study. To analyze data, descriptive statistics and correlation analysis with panel data regression were used with both fixed and random effect models in determining the cause-effect relationships among the variables. The finding indicates that there is no significant statistical relationship between asset growth and income tax compliance within listed manufacturing companies in Nigeria. However, the findings also reveal a positive and significant impact of sustainable growth on the income tax compliance of listed manufacturing companies in Nigeria. In conclusion, the study clearly indicates that sustainable growth has a positive and significant effect on income tax compliance, whereas asset growth shows no significant impact on income tax compliance among listed manufacturing firms in Nigeria. It is the recommendation of the study that: The Manufacturers Association of Nigeria (MAN), in collaboration with tax authorities, should implement training and sensitization programs aimed at educating finance executives and tax managers of manufacturing firms on the importance of adopting sustainable growth models. Additionally, the Corporate Affairs Commission (CAC) and the Financial Reporting Council of Nigeria (FRCN) should enhance disclosure requirements to incorporate detailed reporting on asset growth components.