COMPANY INCOME TAX AND ECONOMIC GROWTH IN NIGERIA

Abstract

Company income tax is an indispensable tool that can be utilized to boost the development of Nigeria's economy. Hence, the need to explore the relationship between company income tax and economic growth in Nigeria. This study adopted the exploratory and ex-post facto design. The exploratory design is used to gather relevant materials from text books, journal articles and so on while the ex-post facto design is adopted on the basis that it does not provide the study an opportunity to control the variables mainly because they have already occurred and cannot be manipulated. The data for this study were obtained mainly from secondary sources. In order to investigate the relationship between company income tax on economic growth (gross domestic products) in Nigeria, information from National Bureau of Statistics concerning Company Income Tax (CIT) and Gross Domestic Product (GDP) covering the period of years 2000-2022 (23years) were used. The study showed that company income tax has a positive relationship with economic growth and development; thus, the impact is substantial. The study concluded that company income tax significantly affect economic growth in Nigeria. The investigator suggested that Policymakers should strengthen tax administration and compliance mechanisms to maximize revenue generation from company income tax, thereby bolstering economic growth. Government should also prioritize initiatives aimed at promoting investment and fostering a conducive business environment, including simplifying regulatory procedures and enhancing infrastructure development.