Background of the Study
Tax policy coordination involves the integration and harmonization of various tax instruments to create a favorable investment climate. In Nigeria, such coordination is essential for boosting national investment by ensuring clarity, fairness, and predictability in tax regimes (Adeyemi, 2023). Recent policy shifts have aimed at aligning federal, state, and local tax policies to reduce regulatory overlaps and enhance investor confidence (Okoro, 2024). Empirical evidence indicates that well-coordinated tax policies can lower the cost of capital, improve compliance, and stimulate private investment (Balogun, 2025). This unified approach is designed to create a more competitive environment for both domestic and foreign investors. The study examines how coordinated tax policy affects investment flows by analyzing policy reforms, tax incentives, and administrative practices. It further considers the role of tax coordination in reducing uncertainty and enhancing transparency in the investment process. In a rapidly changing global economic landscape, the need for efficient tax policy coordination is paramount for sustaining long-term national investment and economic growth (Adeyemi, 2023; Okoro, 2024; Balogun, 2025).
Statement of the Problem
Despite efforts to coordinate tax policies, national investment in Nigeria has not reached its potential. The lack of uniformity in tax regimes across different levels of government creates uncertainties that deter investment (Okoro, 2024). Inconsistencies in tax incentives and administrative practices have led to an uneven playing field, reducing overall investor confidence. As a result, the positive impact of coordinated tax policies on investment remains limited, necessitating an investigation into the specific factors undermining effective coordination (Balogun, 2025; Adeyemi, 2023).
Objectives of the Study
Research Questions
Research Hypotheses
Significance of the Study
This study is significant as it examines the link between tax policy coordination and national investment, providing evidence-based recommendations for policymakers to create a more investment-friendly environment. The outcomes are expected to contribute to a more robust economic framework in Nigeria (Adeyemi, 2023; Okoro, 2024; Balogun, 2025).
Scope and Limitations of the Study
This study is limited to appraising the effects of tax policy coordination on national investment in Nigeria. It focuses solely on tax-related policies without addressing other investment determinants.
Definitions of Terms
• Tax Policy Coordination: The integration of tax measures across different government levels to achieve a unified tax system.
• National Investment: The total investment from both domestic and foreign sources within a country.
• Tax Harmonization: The process of aligning tax laws and practices to reduce discrepancies and improve efficiency.
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