EFFECT OF TAX PAYMENTS ON RETAINED EARNINGS IN NIGERIA MANUFACTURING SECTOR: EVIDENCED FROM DANGOTE CEMENT INDUSTRY (2015 – 2024).

Abstract

The study examined the effect of tax payments on retained earnings in Nigeria manufacturing sector from 2013 to 2022. The study specifically examined the effect of; capital gain tax (CGT) on corporate retained earnings in Nigeria manufacturing sector, company income tax (CIT) on corporate retained earnings in Nigerian manufacturing sector and also investigated the effect of customs and excise duties on corporate retained earnings in Nigerian manufacturing sector. Data for the study were sourced from CBN statistical bulletin. Data collected were analysed using multiple regression analysis. Result of the analysis showed that value added tax (VAT) has significant effect on corporate retained earnings in Nigerian Manufacturing sector. That company income tax (CIT) has positive and significant effect on corporate retained earnings in Nigerian Manufacturing sector. That custom and exercise duty (CED) has positive and significant effect on corporate retained earnings in Nigerian Manufacturing sector. The study recommended that Government should set up monetary team to ensure that companies pay their company income taxes as at when due as it has effects on corporate retained earnings in Nigerian Manufacturing sector.