Tax Policy Reforms and Small Business Growth in Nasarawa State

This study evaluates the effect of recent tax policy reforms on small business growth in Nasarawa State, North Central Nigeria. The state, situated on the periphery of Abuja, has in recent years become increasingly attractive for small business investment, benefiting from its proximity to the Federal Capital Territory and improving road infrastructure. However, the impact of national tax reforms, including the Finance Acts of 2020 to 2023, on small business operators in the state has not been systematically studied. Using a descriptive survey design, the study collects primary data from 160 small business owners registered with the Nasarawa State Ministry of Commerce across four local government areas. The questionnaire assesses awareness of Finance Act provisions, changes in tax obligations, perceived compliance burden, and self-reported business growth indicators. Secondary data from the Nasarawa State Internal Revenue Service on IGR trends supplement primary findings. Descriptive statistics and regression analysis are employed. The study expects to find that provisions such as the VAT registration threshold adjustment and reduced corporate income tax rate for small businesses have a modest positive effect on compliance and growth, but that implementation gaps reduce their full impact. Recommendations include intensifying outreach on Finance Act provisions to small business communities, providing SMEDAN-partnered tax advisory clinics, and reviewing threshold criteria annually to remain current with inflation trends. Keywords: tax policy reform, Finance Act, small business, Nasarawa State, business growth.