Access to Credit Facilities and Tax Compliance among SMEs: Evidence from Nigeria

R.O. Salawu, F. F. Adegbie and O.F. Oladejo
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R.O. Salawu: Department of Accounting, Babcock University, Ilishan –Remo, Ogun State, Nigeria.
F. F. Adegbie: Department of Accounting, Babcock University, Ilishan –Remo, Ogun State, Nigeria.
O.F. Oladejo: Department of Accounting, Babcock University, Ilishan –Remo, Ogun State, Nigeria.

International Journal of Research and Innovation in Social Science, 2019, vol. 3, issue 3, 217-225

Abstract: We investigate the impact of access to credit on tax compliance among SMEs in Nigeria. The need to generate revenue to meet up with the running of government activities has been a focus of every government across the globe, and SMEs are vital to revenue generation in emerging economies like Nigeria. We employ a survey of 400 SME operators in Nigeria. The findings reveal that there is a positive and significant relationship between access to credit and tax compliance (α=0.715, t(395)=15.637, p=0.000). The implication is that access to credit facilities contributes significantly to tax compliance among SMEs operators in Nigeria. The study concluded that access to credit facilities contributed significantly to tax compliance among SMEs operators in Nigeria. The study recommends that the Central Bank of Nigeria, Bank of Industry, Development Bank of Nigeria, Bank of Agric, Ministry of Finance and other government agencies involves in intervention fund should set up a technical committee that will monitor the disbursement and monitoring of intervention funds for SMEs so as to ensure that the SMEs operators access the fund and also to see that the fund is channeled for the purpose to which it was disbursed.

Date: 2019
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