NAVIGATING THE ROLE OF TAXATION IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY IN NIGERIA AND THE INHERENT CHALLENGES

Abstract

The relationship between taxation and corporate social responsibility (CSR) in Nigeria has 
undergone significant transformation, particularly with the enactment of the Nigeria Tax Act 
2025, which repositions taxation as both a fiscal and regulatory tool within commercial 
governance. The evolving framework challenges the traditional perception of CSR as voluntary corporate philanthropy and instead situates tax compliance as a core element of responsible corporate conduct. The aim of the paper was to establish that taxation constitutes a foundational dimension of CSR within Nigerian law and to evaluate the extent to which recent tax reforms align corporate fiscal obligations with broader social responsibility objectives. A doctrinal and comparative methodology is adopted. The analysis draws on key statutory provisions, including the Nigeria Tax Act 2025 and the Petroleum Industry Act 2021, supported by judicial authorities and academic commentary. Comparative insights from jurisdictions such as the United Kingdom, India, and South Africa are incorporated to situate Nigeria‘s approach within a broader legal context. The findings indicated that the Nigeria Tax Act 2025 strengthens the role of taxation in promoting responsible corporate behaviour through enhanced anti-avoidance provisions, transfer pricing rules, and structured deductibility regimes. Notwithstanding these developments, CSR remains conceptually confined within the framework of charitable donations, and significant challenges persist, including tensions between revenue protection and social investment, as well as uncertainties in the tax treatment of mandatory CSR obligations. The paper recommended a reconceptualisation of CSR as a form of regulated social investment, the  adoption of differentiated and targeted tax incentives, clearer statutory guidance on the interaction between tax and sectoral obligations, and improved institutional coordination and transparency to enhance accountability