Digitalisation, Company Income Tax and Economic Growth in Nigeria
This study explored the interactive effect of company income tax (CIT) and information and communication technology (ICT) on economic growth in Nigeria. Data were sourced from the Central Bank of Nigeria (CBN), the National Bureau of Statistics (NBS), the World Bank Development Indicator (WDI), and the African Tax Outlook, covering the period between 2010Q1 and 2022Q4. We employed the dynamic ordinary least squares (DOLS) estimation technique for data analysis. The study revealed the existence of a long-run relationship between digitization, CIT revenue, and economic growth. In addition, the study showed that CIT has an insignificant negative growth effect (-0.0193; p>0.05 and -0.0260; p>0.05), indicating that company income tax revenue is associated with a decrease in the growth of the Nigerian economy. However, ICT exerted a positive but insignificant effect (0.0011; p > 0.05) on economic growth. The study further showed that the interaction between ICT and CIT produced an insignificant positive effect (0.0001; p > 0.05) on economic growth. The study's findings suggest that CIT has the potential to spur economic growth through the medium of ICT; however, technology adoption is currently below the threshold that can significantly influence economic growth in Nigeria. The study concluded that CIT can potentially have a growth-enhancing effect on the Nigerian economy through the adoption of appropriate technology. The study suggests investing cost-effectively in high-technology fiscal devices for the administration and collection of federal tax revenue.
Keywords: Company Income Tax, Digitization, Economic Growth, Economy, Productivity
Citation: Ogunbiyi, O.R., Dahunsi, O.J., & Aribaba, F.O. (2025). Digitalisation, Company Income Tax and Economic Growth in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 10(2), 63-73.