Analysis uncovers the influence of various taxes on financial performance in manufacturing firms, indicating need for tax reform.
Purpose: This paper investigates how taxation affect financial performance of quoted manufacturing companies based on evidence from Nigeria, using emphasis on Companies Income Tax, Information Technology Tax, Capital Gains Tax, and Education Tax. It seeks to provide empirical evidence on how different tax components influence profitability and shareholder value in a developing economy. Design/Methodology/Approach: The article applied ex post facto research design based on secondary data from nine (9) quoted building materials manufacturing companies listed on Nigerian Exchange Group (NXG), covering 2015–2023. Measuring firm performance using Profit After Tax and Earnings Per Share, the paper completes both correlation analysis as well as panel regression based on fixed effects and random effects models. Findings: The results indicate that Companies Income Tax and Information Technology Tax have negative and statistically significant effects on both Profit After Tax and Earnings Per Share. Capital Gains Tax shows a significant effect on Earnings Per Share but not on Profit After Tax, while Education Tax is statistically insignificant. Implications/Originality/Value: The study provides policy-relevant insights for tax reform by highlighting the need for balanced and growth-oriented taxation to enhance manufacturing performance and industrial development in Nigeria.
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Kayode David Kolawole (2025) studied this question.
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