Direct Taxes and Firm Performance: Evidence from Selected Quoted Companies in Nigeria (2009-2018)

This study examined the effect of direct taxes on the performance of export companies in Nigeria. In the light, this project work examined the effect of the major variables of direct taxes i.e., Company Income tax (CIT) and Education tax (ET) on the profit after tax of the selected export companies in Nigeria, using a 10 years' panel data from 2009-2018. The method of analysis was ordinary least square techniques. The findings show that Company Income Tax and Education Tax do not have significant relationship with the performance of the selected export companies (Lafarge Wapco Ltd., Nestle Nigera Plc. and Oando Nigeria Plc) with the p value of < .941 and .715 respectively. Based on the findings of the study, it was concluded that Government should create an enabling environment for the export companies to trade which will invariably improve their performance and in the long-run statutory taxes can be paid without any stress. This study hereby recommend that There should be stringent penalty imposed on any corporate body who indulge in any form of tax malpractices irrespective of states, so also the companies should be encouraged to carry out more social responsibilities other than paying taxes, since direct taxes paid by these organizations do not have any significant effect on their profitability.