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