Behavioural Taxation and Organisational Performance of Micro, Small and Medium Enterprises in Nigeria

This study examines the impact of behavioral taxation on the organisational performance of micro, small, and medium-sized enterprises in Nigeria. Drawing on the theory of planned behaviour, the research examines how taxpayers’ perceptions of fairness and confidence in government influence their compliance attitudes and, in turn, impact enterprise performance. Using a cross-sectional survey research design from a population of 386,655 registered SMEs in Nigeria, and the sample size of 399 participants was derived using Taro Yamane’s formula for a known population using stratified random sampling technique was adopted to ensure adequate representation of different categories of MSMEs. Primary data was collected using structured questionnaires after validity and reliability tests, and secondary data from already existing literature. The responses obtained from the questionnaires administered to the participants were analysed using univariate, bivariate and multivariate analysis, and the findings reveal a positive and statistically significant relationship between tax morale, procedural fairness, distributive fairness and trust in government with organisational performance (growth performance and operational performance). The results suggest that when MSME operators perceive tax processes as fair, equitable, and administered by a trustworthy government, they are more likely to comply voluntarily, resulting in improved operational efficiency and business outcomes. The study underscores the importance of strengthening tax administration, enhancing transparency, and supportive environment for MSME growth in Nigeria.