CORPORATE SOCIAL RESPONSIBILITY AND TAXATION: A CASE STUDY OF NIGERIAN MULTINATIONALS

Abstract

This study examines the relationship between corporate social responsibility (CSR) initiatives and corporate taxation practices among Nigerian multinational corporations (MNCs). Using a quantitative research design, secondary data were obtained from the audited annual reports and sustainability disclosures of 20 Nigerian MNCs across various sectors for the period 2013–2023. CSR was measured through total CSR expenditure and the breadth of CSR project categories, while taxation was measured using effective tax rate (ETR), corporate income tax paid, and compliance with tax disclosure requirements. The study employed descriptive statistics, Pearson correlation analysis, and multiple regression techniques to investigate whether CSR practices complement or substitute corporate tax obligations. The findings reveal a significant positive association between CSR intensity and tax compliance, suggesting that MNCs with higher CSR investment tend to demonstrate stronger tax responsibility. However, the results also indicate that in some cases, CSR initiatives may be strategically used to influence public perception while engaging in aggressive tax minimization practices. The study recommends stronger regulatory frameworks for CSR reporting and tax disclosure, as well as enhanced monitoring by the Federal Inland Revenue Service (FIRS) to ensure that CSR and tax contributions jointly promote sustainable development in Nigeria. This research contributes to the emerging literature on the CSR–tax nexus in developing economies, offering insights for policymakers, regulators, and multinational managers.