Journal of Management Research and Review (JMRR)

Corporate Tax Reform and Economic Growth in Nigeria

Jinadu, Maumo Jerry, Peter, Ajagun, Olusegun, Ojo, Awogbayila, Sunday, Adeolu, Abata, Matthew, Sunday, Kehinde, James

3 November 2025 · Vol. 1, Issue 5, pp. 124-134

DOI: 10.65150/EP-jmrr/V1E5/2025-01

Abstract

This study examines the relationship between the effective corporate tax and investment levels in the economy in Nigeria. Using a mixed-methods approach that combines quantitative panel data analysis from 2011 to 2023 across five Nigerian states with a review of theoretical and empirical literature, the research employs econometric techniques including Fully Modified Ordinary Least Squares (FMOLS) to estimate long-run effects. The findings reveal that corporate tax rates have a significant inverse relationship with investment, suggesting that high tax burdens deter private sector investment. The research concludes that well-designed tax reforms can significantly promote economic growth by encouraging investment, improving labour participation, and enhancing industrial competitiveness. It recommends progressive tax structures, reduced reliance on indirect taxes, strengthened tax administration through digitalization, and targeted incentives to support inclusive and sustainable economic development. This study contributes to the existing literature by providing empirical evidence from a developing economy context and offers policy insights for fiscal authorities in Nigeria and similar economies.

Keywords: Consumption Tax, Corporate Tax, Economic Growth, FMOLS, Panel Data, Tax policy reforms

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Jinadu, Maumo Jerry, Peter, Ajagun, Olusegun, Ojo, Awogbayila, Sunday, Adeolu, Abata, Matthew, Sunday, Kehinde, & James (2025). Corporate Tax Reform and Economic Growth in Nigeria. Journal of Management Research and Review, 1(5), 124-134. https://doi.org/10.65150/EP-jmrr/V1E5/2025-01

@article{Jinadu2025,
  title   = {Corporate Tax Reform and Economic Growth in Nigeria},
  author  = {Jinadu and Maumo Jerry and Peter and Ajagun and Olusegun and Ojo and Awogbayila and Sunday and Adeolu and Abata and Matthew and Sunday and Kehinde and James},
  journal = {Journal of Management Research and Review},
  year    = {2025},
  volume  = {1},
  number  = {5},
  pages   = {124-134},
  doi     = {10.65150/EP-jmrr/V1E5/2025-01},
  url     = {https://doi.org/10.65150/EP-jmrr/V1E5/2025-01}
}

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