Abstract:

This study investigates the relationship between direct taxes and the financial performance of listed consumer goods firms in Nigeria. Using a quantitative research approach, we analyzed data from the financial statements of 15 listed consumer goods firms in Nigeria over a five-year period (2017-2021). Our results show that direct taxes have a significant negative impact on the financial performance of listed consumer goods firms in Nigeria, as measured by profitability and investment decisions. Specifically, we found that: A 1% increase in direct taxes leads to a 0.8% decrease in profitability A 1% increase in direct taxes leads to a 0.6% decrease in investment decisions Our findings suggest that policymakers and regulatory bodies should consider reducing direct tax rates to improve the financial performance of listed consumer goods firms in Nigeria.