TAX PLANNING STRATEGIES AND BUSINESS GROWTH IN NIGERIA

ABSTRACT This study investigated the relationship between tax planning strategies and business growth in Nigeria, focusing specifically on tax avoidance techniques and tax incentives utilization as predictors, and revenue growth and profitability growth as outcomes. Employing a descriptive survey design, data were collected from 250 registered businesses in Lagos State through a structured questionnaire. The data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. The results revealed a significant positive relationship between tax avoidance techniques and both revenue growth (r = 0.61, p < 0.01) and profitability growth (r = 0.58, p < 0.01). Similarly, tax incentives utilization was found to have a significant positive relationship with revenue growth (r = 0.65, p < 0.01) and profitability growth (r = 0.67, p < 0.01). Regression analysis showed that tax avoidance and tax incentives utilization significantly predicted variations in revenue and profitability growth, with R² values ranging between 0.34 and 0.45. The study concludes that tax planning is a strategic tool that positively impacts business growth, enhancing both revenue and profitability when effectively managed. It recommends that businesses invest in ethical tax avoidance practices and maximize available tax incentives to drive growth, while policymakers should streamline tax policies to encourage compliance and support economic development. The study contributes to the existing body of knowledge by reinforcing the critical role of tax planning strategies in fostering sustainable business growth in emerging economies like Nigeria.