The analysis of the impact of corporate income tax on investment in Nigeria

Adegbite,, Tajudeen Adejare and Akande, Shittu Saheed The analysis of the impact of corporate income tax on investment in Nigeria. Wo r l d Wi d eJ o u r n a l o f M u l t i d i s c i pl i n a r y R e s e a r c h a n d D e v e l o p me n t. ISSN 2454-6615

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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 Interestrate). Findings reveals that Corporate income tax (CIT) has a negative impacton Investment (β = -.0000104; p ≤ 0.05). Interest rate also has negative significanteffect 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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