This study examined the effect of board independence and board financial expertise on tax compliance among manufacturing companies listed on the Nigerian Exchange Group (NGX) from 2015 to 2024. Tax Compliance was proxied by the Effective Tax Rate (ETR), computed as Total Tax Expense divided by Profit Before Tax. Board Independence was measured as the proportion of independent non-executive directors to total board size, while Board Financial Expertise was measured as the proportion of directors with recognized finance or accounting qualifications. Firm Size, measured as the natural logarithm of total assets, was included as a control variable. Adopting a positivist philosophy and longitudinal research design, secondary data were extracted from audited annual reports of all 45 listed manufacturing firms, yielding a balanced panel of 450 firm-year observations via census sampling. Panel data regression was employed, with the Random Effects model selected based on the Hausman specification test. Findings revealed that Board Independence, Board Financial Expertise, and Firm Size all exerted positive and statistically significant effects on tax compliance. The study concluded that board composition, particularly the presence of independent and financially qualified directors, plays a critical role in shaping tax compliance outcomes among Nigerian listed manufacturing firms. Accordingly, it was recommended that regulatory authorities strengthen board independence requirements and promote board financial expertise to enhance fiscal discipline and government revenue generation in the Nigerian manufacturing sector.
Alhassan et al. (2025) studied this question.