Abstract: Profitable companies are expected to pay a 30% companies income tax on their profits earned in Nigeria. However, many companies in Nigeria pay far less due to their application of tax avoidance strategies. This paper report how profitable companies in Nigeria are able to successfully employed the loopholes in the Nigerian tax system to significantly lower their effective tax rate over the past five years. The paper examines 68 companies that are consistently profitable in each of the five years between 2014 and 2018, excluding companies that experienced even one unprofitable year during this period. From the analysis, this paper finds that as a group, the 68 companies examined paid an effective companies income tax rate of only 16.45% over the five-year period - far less than the statutory 30% companies’ income tax rate. Based on the evidence, this paper advocate for a strong alternative minimum tax that can do the job it was originally designed to do thereby bring about transparency, equity and fairness in tax payment in Nigeria. This paper adds new knowledge to the understanding of the state of tax avoidance in Nigeria. Finally, identifying firms’ aggressive tax planning strategies will close the tax loopholes and boosting tax revenue in Nigeria.Abstract: Profitable companies are expected to pay a 30% companies income tax on their profits earned in Nigeria. However, many companies in Nigeria pay far less due to their application of tax avoidance strategies. This paper report how profitable companies in Nigeria are able to successfully employed the loopholes in the Nigerian tax system to significantl...Show More
Abstract: Agricultural finance for smallholder farmers is critical for the growth and development of agricultural sector. Despite the increasing number of formal financial institutions penetrating in rural areas of Ethiopia, access to credit among the majority of agricultural households remains limited. To ensure that appropriate strategies are designed for improving participation in formal credit, it is important to understand why smallholder farmers cannot borrow loan for farming purposes from formal sources. Thus, this study was sought to ascertain factors that affect smallholder farmers participation in formal credit and challenges of formal financial institutions lending to agricultural activities (smallholders). Structured interview was used for collecting the data from the sampled farm households. Descriptive statistics and binary logit model were used for analyzing data. The study indicates that 43 (31.16%) of the sampled farm households were formal credit participants, whereas the remaining 95 (68.84%) were non-participants. Negative perception of farm households in formal credit participation was attributed the isolation of very poor farmers from group formation in case of group lending system. Number of livestock owned, group lending and distance from lending institution were factors influencing participation of households in formal credit use negatively as evidenced by the model output. This study recommends that in order to make agricultural development successful these factors and problems are taken into consideration by policy makers to enable participation in credit use from formal financial sources.Abstract: Agricultural finance for smallholder farmers is critical for the growth and development of agricultural sector. Despite the increasing number of formal financial institutions penetrating in rural areas of Ethiopia, access to credit among the majority of agricultural households remains limited. To ensure that appropriate strategies are designed for ...Show More
Abstract: This work attempts to observe the current state of school banking, its trend and its association with profitability. Data from secondary sources have been collected for the period of 10-years from 2011 to 2020 to achieve the goals. The data have been collected, tabulated, categorized, coordinated and performed the relevant calculation of to fulfill the purpose. With the assistance of MS Office Excel and IBM SPSS-21, tabular presentation, graphical analysis, percentage, correlation, and simple linear regressions have been used to analyze data. Independent variables are known to be the volume of deposits in the school bank account. Return on assets (ROA) and return on equity (ROE) are chosen as profitability yardstick and used as a dependent variable for regression analysis. The results of the research have shown an increasing trend of account opening during the time and collection of deposits from these accounts. Between 2011 to 2020, the amount of school bank deposits compared to banks' overall deposits also increased from 0.01 percent to 0.16 percent. The assessment of the correlation showed that there was a strong positive association between the number of accounts opened and the sum deposits in those accounts. It also found that there was a relatively high negative relationship between the volume of deposits in school bank accounts and the return on equity and the return on assets. The output of the regression also clearly shows that school banking (amount of deposits) has a negative relationship with return on equity and return on total asset. The analysis is carried out on the basis of secondary data. However it is not possible to judge validity and reliability.Abstract: This work attempts to observe the current state of school banking, its trend and its association with profitability. Data from secondary sources have been collected for the period of 10-years from 2011 to 2020 to achieve the goals. The data have been collected, tabulated, categorized, coordinated and performed the relevant calculation of to fulfill...Show More