Authors : Fadipe, Adeniyi Olubunmi; Adekoya, Olufemi; Adeniyi, Hannah Anuoluwapo

Volume/Issue : Volume 10 - 2025, Issue 4 - April

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DOI : https://doi.org/10.38124/ijisrt/25apr326

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Abstract : This study examined the impact of corporate tax rates on investment decisions in Nigeria’s agricultural sector, with a particular focus on how Company Income Tax (CIT), Education Tax (ET), and Capital Gains Tax (CGT) influence financial performance as measured by Earnings Per Share (EPS). Utilising an ex-post facto research design, the study employs secondary data from audited annual reports of selected agricultural firms listed on the Nigerian Exchange Group over ten years (2013–2023). Panel regression analysis using SPSS reveals that CIT exhibits a positive and statistically significant effect on EPS, suggesting that higher company income tax rates, possibly coupled with compensatory tax incentives, are associated with enhanced reinvestment and profitability. The Education Tax Rate also shows a positive relationship with EPS, though its significance is marginal, indicating potential benefits from improved human capital development if appropriately leveraged. Conversely, the Capital Gains Tax Rate does not significantly impact EPS, implying that its current structure may have limited influence on investment decisions in the agricultural context. The findings underscore the complex interplay between fiscal policies and investment behaviour, leading to policy recommendations that advocate for refined tax incentives and targeted adjustments in the corporate tax regime to stimulate investment in the agricultural sector. This study contributes to the broader literature on tax policy and investment decisions by highlighting sector-specific dynamics that can inform more effective fiscal reforms in emerging economies.

Keywords : Corporate Tax Rates, Investment Decisions, Agricultural Sector, Earnings Per Share, Nigeria, Tax Policy.

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