EFFECT OF TAX POLICY ON CORPORATE INVESTMENT DECISIONS OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Abstract
Investment decisions lie at the heart of economic growth, guiding firms and investors in allocating scarce resources to projects or assets which are expected to yield future returns. The intersection of tax policy and corporate investment in Nigeria is riddled with systemic inefficiencies, policy inconsistencies, and economic instability. These issues create an uncertain investment climate, discourage foreign direct investment (FDI), and negatively affect long-term capital planning. Previous studies have focused more on the negative effect of higher rates on investment metrics, leaving a gap at the level of tax policy. This study investigated the effect of tax policy on investment decisions, with a view to evaluating Return on Investment (ROI), Liquidity Ratio (LR), and Financial Leverage (FL). The study adopted ex-post facto design. Data were obtained from audited financial statements of 9 oil and gas companies listed on the Nigerian Exchange Market (NGX) as of July 3, 2025. Data covered a ten-year period (2015–2024). Total enumeration sampling was used to select data for analysis. Validity and reliability of data were premised on financial statements audited by statutory auditors. Data were analysed using descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). Tax policy had significant effect on ROI (Adj R2 = 0.689, F(3,86) = 18.96, p= 0.000
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