Ownership Structure and Tax Aggressiveness of Listed Multinational Companies in Nigeria

Nigeria, as an emerging economy rich in natural resources, particularly oil, faces significant challenges in diversifying its revenue sources. The heavy reliance on oil revenue has made the economy vulnerable to fluctuations in global oil prices, necessitating a shift towards enhanced tax collection from various sectors. Multinational companies (MNCs) play a crucial role in this context, as their tax strategies can significantly impact government revenue and economic stability. This study seek to investigate the relationship between ownership structure and tax aggressiveness among listed multinational companies (MNCs) in Nigeria. As the country seeks to diversify its economy, understanding the tax strategies employed by MNCs becomes essential for enhancing tax revenue and ensuring corporate accountability. Utilizing a ten-year panel data approach (2013-2022) from published annual reports of MNCs listed on the Nigerian Exchange Group (NGX), the research employs ex-post facto and correlational methodologies to analyze the impact of various ownership structures, including foreign ownership, government ownership, and institutional ownership, on tax aggressiveness. The findings reveal that foreign ownership significantly influences tax planning strategies, often leading to increased tax avoidance behaviors. Additionally, the study highlights the need for improved corporate governance mechanisms to mitigate aggressive tax practices. The Federal Inland Revenue Service (FIRS), Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), and Ministry of Finance should collaborate to strengthen corporate governance, revise tax policies for foreignowned MNCs, promote local ownership, improve tax enforcement, increase transparency, and implement progressive taxation systems to enhance tax revenue and corporate accountability.