Tax Optimization Strategies and Operating Performance of ICT Firms in Nigeria

  • Authors

    • Felix Enaibre Ighosewe Department of Accounting, Dennis Osadebay University, Asaba, Nigeria
    • Lucky Izobo Enakirerhi Department of Accounting, Dennis Osadebay University, Asaba, Nigeria
    • Theresa Nkechi Ofor Department of Accountancy, Chukwuemeka Odumuegwu Ojukwu University, Igbariam, Nigeria
    • Ebele Anthonia Aniesodo Department of Accountancy, Chukwuemeka Odumuegwu Ojukwu University, Igbariam, Nigeria
    • Jennifer, C. Okafor Department of Accountancy, Chukwuemeka Odumuegwu Ojukwu University, Igbariam, Nigeria
    • Felix Ubaka Ilechukwu Department of Accountancy, Chukwuemeka Odumuegwu Ojukwu University, Igbariam, Nigeria
    https://doi.org/10.14419/jrfmd364

    Received date: July 3, 2025

    Accepted date: August 8, 2025

    Published date: August 26, 2025

  • Tax Optimization Strategies, Effective Tax Rate, Marginal Tax Rate, and Operating Performance

  • Abstract

    This study evaluated the effect of corporate tax optimization strategies (CTP) on operating performance (OPF) of ICT firms in Nigeria from 2014-2023. The CTP proxies used are the effective tax rate (ETR) and the marginal tax rate (MTR). These CTP proxies served as the regressors, while return on assets (ROA) was used to proxy OPF. OPF served as the regressor. The study sampled five (5) ICT firms out of the eight (8) quoted information communication (ICT) firms in Nigeria as at 31st December 2023. The study adopted robust least squares. The study reported that lower ETR and MTR improve the operational performance of ICT firms. Hence, the study concludes that high ETR and low MTR enhance the operational performance of ICT firms within the studied periods. Thus, the management teams of ICT firms should minimize their tax burden within the confines of the law. They can achieve this through optimal debt financing.  Lastly, tax planning experts in ICT firms should ensure that changes in tax laws or the marginal tax rate are factored into a broader, more comprehensive tax strategy that aligns with long-term business objectives.

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  • How to Cite

    Ighosewe , F. E. ., Enakirerhi , L. I. ., Ofor, T. N. . ., Aniesodo , E. A. ., Okafor , J. C. ., & Ilechukwu , F. U. . (2025). Tax Optimization Strategies and Operating Performance of ICT Firms in Nigeria. International Journal of Accounting and Economics Studies, 12(4), 700-705. https://doi.org/10.14419/jrfmd364