The analysis of the impact of corporate income tax on investment in Nigeria
- Country : Nigeria
- Subject : Management and Accounting
Abstract
The study evaluated the impact of corporate income tax on investment in Nigeria. It also examined the significant relationship corporate income tax and investment in Nigeria. Secondary data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletins (various issues), National Bureau of Statistics. The data covered 25 years period from 1991-2015. Pearson product moment correlation and multiple regressions were employed to examine the relationship between the dependent variable (Investment) and independent variables (Corporate income tax, Import, Exchange rate and Interest rate). Findings reveals that Corporate income tax (CIT) has a negative impact on Investment (β = -.0000104; p ≤ 0.05). Interest rate also has negative significant effect on Investment in Nigeria (β =-0.48799; p ≤ 0.05) with the adjusted R2 @ 94.2%. In conclusion, corporate income tax has negative and statistical impact on Investment in Nigeria. It is now recommended that Nigeria government should reduce the corporate income tax on companies and work on how interest rate would be minimized in order to accommodate more investment in Nigeria.
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