The Effects of Multiple Taxation on the Performance of Small and Medium Enterprises in Calabar Metropolis, Cross River State, Nigeria

By: Otu, Christopher Awa & Henry, James Tumba

Pages: 155–185, Volume: 3, Number: 2

Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 8/1/2026, 2026

ISSN (Electronic): 2536-6742

DOI:

The Effects of Multiple Taxation on the Performance of Small and Medium Enterprises in Calabar Metropolis, Cross River State, Nigeria

Abstract:

Small and Medium Enterprises (SMEs) play a pivotal role in fostering economic growth, innovation, and employment generation, particularly in developing economies such as Nigeria. However, the burden of multiple taxation has been identified as a major constraint to SME growth and sustainability. This study investigates the impact of multiple taxation on the performance of SMEs in Calabar Metropolis, Cross River State, Nigeria. Using a mixed-methods approach, primary data were collected through structured questionnaires administered to SME operators, complemented by interviews with tax officials. The study employed both descriptive and inferential statistical tools to analyze the data. Findings reveal that multiple taxation significantly hampers SME profitability, discourages business expansion, and increases the rate of enterprise mortality. The results further highlight gaps in tax administration, compliance costs, and the duplication of levies at federal, state, and local government levels. The study concludes that reforming the tax system by harmonizing levies, enhancing transparency, and offering incentives to SMEs will improve their performance and contribution to economic development. The paper provides policy recommendations aimed at creating a more enabling tax environment for SMEs in Nigeria.

Keywords: Multiple taxation, Small&Medium Enterprises (SMEs), Business performance, Tax policy, Calabar