TAX REFORMS AND FINANCIAL PERFORMANCE OF NIGERIAN QUOTED COMPANIES

Nigeria’s tax system presents persistent challenges for quoted companies, including high corporate tax burdens, inefficiencies in tax administration, and frequent policy changes that disrupt financial planning and profitability. These issues, compounded by economic volatility and compliance complexities, undermine the financial performance of non-financial firms. This study investigates the impact of tax reforms specifically corporate tax rate (CTR) changes, value-added tax (VAT) adjustments, and tax compliance policies on the financial performance of Nigerian quoted companies. Utilizing an ex-post facto research design, the study analyzes secondary data from 30 non-financial companies listed on the Nigerian Exchange Group (NGX) from 2018 to 2024, covering major reforms like the Finance Acts of 2019 - 2023. Financial performance is measured by Return on Assets (ROA), with CTR, VAT, and tax compliance index as proxies for tax reforms. Multiple linear regression analysis reveals that CTR reforms significantly reduce financial performance (β = –0.285, p = 0.001), limiting after-tax profits and reinvestment. VAT reforms show a negative but insignificant effect (β = –0.112, p = 0.097), as firms offset impacts through pricing. Tax compliance policies positively affect performance (β = 0.204, p = 0.007) by reducing administrative costs via digitalization. The model accounts for 41.7% of ROA variation, with diagnostic tests confirming robustness. The study recommends lowering corporate tax rates, improving digital tax systems, and conducting sector-specific assessments to support economic growth. Further research should explore long-term impacts, sector-specific effects, and qualitative managerial insights.