COMPANY INCOME TAXATION AND SOCIO-ECONOMIC INFRASTRUCTURAL DEVELOPMENT IN NIGERIA

ABSTRACT This study critically examines the impact of Companies Income Tax (CIT) on infrastructural development in Nigeria, with a particular focus on road, educational, and health infrastructure within the post-tax reform era. The primary objectives were to determine the relationship between company income tax and road infrastructure, assess its influence on educational infrastructural development, and examine its effect on health services infrastructure in Nigeria. The study adopted an ex post facto research design, utilizing secondary data obtained from the Federal Inland Revenue Service (FIRS), National Bureau of Statistics (NBS), and Central Bank of Nigeria (CBN) spanning multiple fiscal years. Data were analyzed using inferential statistical techniques, including regression analysis to test the hypothesized relationships. The empirical findings revealed a significant positive relationship between company income tax and educational infrastructure (p < 0.05), while its effects on road (p > 0.05) and health infrastructure (p > 0.05) were statistically non-significant. These results suggest that CIT revenue has been more effectively channeled into improving educational facilities than road and health infrastructures. The limited impact of CIT on physical and health infrastructure indicates the possible dominance of other fiscal instruments, such as the Petroleum Profit Tax (PPT) and Value Added Tax (VAT), in funding these sectors. The study concludes that while Companies Income Tax contributes meaningfully to human capital infrastructure, its broader infrastructural impact remains suboptimal. It therefore recommends that the Nigerian government should institutionalize periodic tax reforms every four years to expand the fiscal base and enhance revenue efficiency.