Taxation and Corporate Performance of Quoted Oil and Gas Companies in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2025.v3i3.227.233-242Keywords:
Companies Income Tax, Corporate Performance, Taxation, Value-Added tax, Return on AssetsAbstract
While taxation is claimed to be an indispensable means of revenue generation for the government to meet the expectations of its citizens in terms of the provision of social amenities, it is a means of spending from profits for corporate organisations, which will inevitably have a negligible effect on their profits. In line with the need to appraise how taxation influences corporate profitability, this study evaluates the influence of taxation on the corporate performance of 9 Oil and Gas companies quoted in Nigeria from 2008 to 2022. The analysis was based on random-effect regression as specified by the Breusch-Pagan Lagrangian Multiplier test. The findings reveal that companies’ income tax has a significant negative influence on corporate performance, whereas value-added tax has a significant positive influence on the corporate performance of the sampled Oil and Gas companies. This study recommends that company income tax should be strictly administered in line with ‘the ability to pay’ theory. This is because of the negative influence on the financial performance of the companies. Furthermore, companies should faithfully remit proceeds of value-added tax to the tax authority since it enhances their financial performance.
References
Downloads
Published
Issue
Section
License
Copyright (c) 2025 FUDMA Journal of Accounting and Finance Research [FUJAFR]
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The FUDMA Journal of Accounting and Finance Research (FUJAFR) operates a copyright policy that ensures a balance between author rights and wide dissemination of scholarly work.
1. Author Copyright Retention
Authors retain full copyright of their published work without restriction. Submission to FUJAFR does not transfer ownership of copyright to the journal.
2. License to Publish
By submitting a manuscript and upon acceptance, authors grant FUJAFR:
- The right to publish, reproduce, and distribute the article
- The right to identify itself as the original publisher of the work
This grant is non-exclusive, meaning authors are free to reuse their work in other contexts, provided proper acknowledgment of the original publication in FUJAFR is made.
3. Licensing of Published Content
All articles are published under the:
Creative Commons Attribution-NonCommercial License (CC BY-NC 4.0)
Under this license:
- Users may share and adapt the work for non-commercial purposes only
- Proper attribution to the author(s) and the journal is required
- Any commercial use requires explicit permission from the copyright holder
4. Author Reuse Rights
Authors are permitted to:
- Archive their published articles in institutional repositories or personal websites
- Share their work for educational and research purposes
- Reuse portions of their work in future publications (e.g., books or other articles), provided proper citation of the original publication is included
5. Third-Party Content
Authors are responsible for obtaining permission to use any third-party copyrighted material (e.g., images, tables, datasets) included in their manuscripts. Proper acknowledgment must be provided where required.
6. Attribution Requirement
All users of FUJAFR content must provide appropriate credit, including:
- Author name(s)
- Article title
- Journal name (FUJAFR)
- Year of publication
