Impact of Multiple Taxation on Entrepreneurship Motivation in Nigeria

Multiple taxation represents a critical impediment to entrepreneurial development in Nigeria, where overlapping fiscal obligations from federal, state, and local governments create substantial barriers to business formation and growth. This study examines the multifaceted impact of Nigeria's fragmented tax system on entrepreneurship motivation, exploring how duplicative tax obligations affect business creation decisions, operational sustainability, and growth trajectories. Drawing on institutional theory and entrepreneurship literature, this research analyzes the psychological, financial, and operational consequences of multiple taxation on entrepreneurial behaviour within the Nigerian context. Findings indicate that excessive tax multiplicity creates substantial compliance burdens, increases operational costs, diminishes profit expectations, and fundamentally erodes the motivation to pursue entrepreneurial ventures. The study reveals that Nigerian entrepreneurs operating under multiple taxation regimes experience heightened uncertainty, reduced innovation capacity, increased propensity toward informal sector participation, and diminished confidence in government institutions. This research contributes to understanding the institutional determinants of entrepreneurship in developing economies by demonstrating how Nigeria's complex tax system serves as a critical disincentive to entrepreneurial activity. The paper concludes with eight evidence-based recommendations specifically tailored to the Nigerian context for policymakers seeking to reform taxation structures to foster robust entrepreneurial ecosystems. These recommendations emphasize tax harmonization across governmental tiers, compliance simplification, transparency enhancement, and the creation of entrepreneur-friendly fiscal environments that support rather than suppress business creation and economic development in Africa's largest economy.