TAX PLANNING, DEFERRED TAX ASSET AND PROFITABILITY OF SELECTED LISTED MANUFACTURING COMPANIES IN NIGERIA

This study investigated the determinants of tax planning strategies and deferred tax assets, and their effect on the profitability of selected quoted manufacturing companies in Nigeria. It addressed the growing need for effective tax management in Nigeria’s manufacturing sector, which is characterized by high operational costs, fluctuating income, and a complex tax environment. The study adopted a retrospective research design, analyzing financial data from ten purposively selected manufacturing firms listed on the Nigerian Exchange Group (NGX) between 2014and 2024. Variables such as Return on Assets (ROA), Effective Tax Rate (ETR), firm size, leverage, and deferred tax assets were used.Findings revealed that firm-specific factors like leverage, size, and managerial tax knowledge significantly influenced the adoption of tax planning strategies. Deferred tax assets were found to have a positive, albeit not always significant, impact on firm profitability, while tax planning strategies contributed positively to return on assets. The study also discovered a synergistic effect between deferred tax assets and tax planning, suggesting that firms that effectively integrate both elements into their financial management strategies tend to perform better financially.This research contributes to the growing body of literature on tax planning and deferred taxation in emerging economies and provides practical implications for policymakers, investors, and corporate managers seeking to enhance firm performance through strategic tax management