THE CONTRIBUTION OF COMPANY INCOME TASK TO DEVELOPMENT OF THE NIGERIAN ECONOMY (A CASE STUDY OF FEDERAL INLAND REVENUE SERVICE DAMATURU)

ABSTRACT This study examines the contribution of Company Income Tax (CIT) to the development of the Nigerian economy, using the Federal Inland Revenue Service (FIRS), Damaturu, as a case study. The research aimed to assess the extent to which company income tax influences economic growth and development, identify the challenges facing its administration, and recommend strategies for improving tax collection efficiency. A descriptive survey research design was adopted, and data were collected through structured questionnaires administered to FIRS staff and representatives of registered companies in Damaturu. Both primary and secondary data were analyzed using descriptive and inferential statistical techniques. The findings revealed that company income tax significantly contributes to Nigeria’s economic development through increased revenue generation used in funding infrastructure, education, health, and other public services. However, the study also identified challenges such as tax evasion, administrative inefficiencies, corruption, and low public awareness, which hinder the effective collection and utilization of company income tax revenue. The study concludes that while CIT remains a vital source of government revenue and a driver of economic growth, its full potential can only be realized through improved tax administration, stricter enforcement, enhanced taxpayer education, and the use of technology in tax operations. It recommends that FIRS intensify efforts in taxpayer sensitization, strengthen monitoring systems, and collaborate with other government agencies to ensure transparency and accountability in tax revenue management.