EFFECT OF MULTIPLE TAXATION AND LEVIES ON ENTREPRENEURS' ACCESS TO FINANCE: EVIDENCE FROM SMES IN MAIDUGURI METROPOLIS

TOPIC: EFFECT OF MULTIPLE TAXATION AND LEVIES ON ENTREPRENEURS' ACCESS TO FINANCE: EVIDENCE FROM SMES IN MAIDUGURI METROPOLIS

TOPIC IS SUITABLE FOR:
1-Department of Accounting
2-Department of Banking and Finance
3-Department of Business Administration
4-Department of Entrepreneurship
This research material contains:
1-Chapter One to Five
2-Recent References/Citations
3-Tables in Chapter Four
4-Accurate Data Analysis
5-Table of Contents
6-Questionnaire

ABSTRACT 
This study was carried out to examine the effect of multiple taxation and levies on entrepreneurs' access to finance using Small and Medium Enterprises (SMEs) in Maiduguri Metropolis as a case study. The study was specifically carried out to examine the effect of multiple taxation on SMEs' ability to obtain bank loans in Maiduguri, assess the influence of multiple levies on SMEs' access to microfinance and other formal credit facilities in Maiduguri, determine the effect of tax compliance costs on entrepreneurs' access to finance among SMEs in Maiduguri, and examine the influence of the tax burden on the financial capacity of SMEs to secure external financing in Maiduguri. The study employed the descriptive survey research design. The study population comprised 5,732 registered SMEs in Maiduguri Metropolis, while a total of 374 respondents were selected as sample size using the Taro Yamane formula. Out of the 374 questionnaires distributed, 355 were returned and 355 were validated for analysis. The questionnaire was used for data collection, while the data collected were analyzed using frequency tables, mean scores, and multiple regression analysis with the aid of SPSS version 25. From the responses obtained and analyzed, the findings revealed that multiple taxation has a significant effect on SMEs' ability to obtain bank loans at β = 0.294, R² = 0.679, P = .000. The study also showed that multiple levies have a significant influence on SMEs' access to microfinance and other formal credit facilities at β = 0.247, R² = 0.679, P = .000. Likewise, tax compliance costs were found to have a significant effect on entrepreneurs' access to finance among SMEs at β = 0.215, R² = 0.679, P = .000, while tax burden also showed a significant influence on the financial capacity of SMEs to secure external financing at β = 0.326, R² = 0.679, P = .000. The study concluded that multiple taxation, multiple levies, tax compliance costs and tax burden each had a significant effect on entrepreneurs' access to finance among SMEs, though at varying degrees. Tax burden emerged as the most influential factor, demonstrating the strongest effect on SMEs' financial capacity to secure external financing. The study therefore recommends that government should harmonize taxes and eliminate multiple taxation, review and reduce excessive levies imposed on SMEs, simplify tax compliance procedures to minimize compliance costs, and implement tax policies that reduce the overall tax burden in order to improve entrepreneurs' access to formal sources of finance.
Keywords: Multiple Taxation, Multiple Levies, Tax Compliance Costs, Tax Burden, Entrepreneurs' Access to Finance, SMEs.

CHAPTER ONE
INTRODUCTION (Preview)
1.1 Background of the Study
Entrepreneurship had been a key element in improving productivity and inclusive economic engagement, especially in the growth of small and medium enterprises (SMEs)(Manzoor et al. (2021). Jensen et al. (2021) noted that the institutional frameworks and macroeconomic policies that businesses function in are crucial to the sustainability and scalability of entrepreneurial ventures. Fiscal governance, especially tax regimes, has continued to play a key role in these arrangements as they determined resource allocation and financing of the public sector. Agbenyo et al., (2025), had also confirmed that structured taxation arrangements were vital in revenue mobilisation and economic stability and also shaped private sector development pathways. In this overall economic setting, SMEs had always played a key role as employers of labour, and as stimulators of grassroots economic activity, which underscored the need to gain a better understanding of the fiscal settings in which they operated.
Taxes and levies are a key fiscal tool used by governments to generate revenue for government spending and development programmes. Takyi (2024) had defined multiple taxation as the levy of similar or overlapping tax liabilities, on the same tax base, by two or more levels or agencies of government in the same jurisdiction. According to Ajirowo (2024), levies are taxes in the form of compulsory fees levied on companies to ensure regulatory compliance, provision of services, or administrative obligations and are usually in addition to formal tax system. Ramzani et al (2024) had pointed out that these fiscal instruments were likely to create cumulative financial obligations which when not properly harmonised, could change the cost structure of enterprises. In many emerging economies, this fiscal multiplicity had been found to affect business sustainability because they had less flexibility in business operations and were less compliant. As mentioned by Ofosu-Ampong (2024), the disjointed tax systems in countries could impact the financial planning of SMEs and consequently influence strategic investment decisions. As such, taxation and levies remained important influences in the financial structure of entrepreneurial business, especially since there were overlapping regulatory demands.
Access to finance is the capacity of entrepreneurial units to secure adequate financial resources from formal and informal financial institutions at reasonable cost, tenure and conditions. As stated by Koziol et al. (2025), access to finance is a crucial factor in driving business growth, innovation, and sustainability, especially for SMEs with limited resources. Information asymmetry, high collateral demands and risk perceptions by lending institutions were noted as common problems that SMEs faced to access finance as observed by Ongayi et al. (2021). Jain (2025) had also mentioned that financial institutions generally considered the liquidity position, profitability ratio and regularity of cash flow of enterprises, making the enterprises which were financially burdened less attractive for credit allocation. In this sense, Agbenyo et al. (2025) had argued that the excessive fiscal obligation decreased internal capital accumulation, and thus, weakens the ability of the firms to satisfy external financing requirements. Therefore, the link between fiscal pressure and financial accessibility had become an important field of concern in the understanding of financial dynamics in the entrepreneurial development process.
In the Nigerian business landscape, SMEs had formed a major part of the economic landscape, and had, over time, played a significant part in employment creation and local production systems. But the fiscal situation had been complicated by the fact that there were several layers of taxation by federal, state and local governments. Ajirowo (2024) had noted that the multiple also led to conflictual fiscal responsibilities in urban commercial centres where regulatory presence was more pronounced. SMEs in Maiduguri Metropolis had been functioning in a dynamic but challenging fiscal environment where they are faced with a number of tax and levy systems. Such fiscal conditions had been mentioned by Ramzani et al. (2024) to affect enterprise liquidity and limit the reinvestment ability, which in turn impacted the financial growth prospects. Takyi (2024) had also stressed the need to harmonise tax administration and enforcement processes, as this had created compliance challenges for small businesses. Thus, the link of multiple taxation, levies and financial inclusion for SMEs became increasingly relevant in Maiduguri Metropolis where SMEs are a significant part of the economic activities and financial inclusion.

1.2 Statement of  the Problem    
Small and medium-sized enterprises (SMEs) have maintained their vital role in the economic development agenda, especially in emerging economies where they play a significant role in employment, income and diffusion of innovation. Manzoor et al. (2021), Jensen et al. (2021) stated that SMEs continued to serve as a crucial mechanism for inclusive growth and productive capacity of developing national economies. This significance notwithstanding, the business context of SMEs has been influenced by a variety of fiscal and institutional policies that are intended to control the firm's activities and produce public revenue. Agbenyo et al. (2025) and Koziol et al. (2025) had underscored the significance of having enough finances as a major factor in the survival and growth of SMEs; finance being the enabler of investment in infrastructure, technology and human capital. As in an ideal economic environment, the SME sector is supposed to be in a stable fiscal environment, where it has to be efficient, financially accessible and growing sustainably without unnecessary administrative hassles or distortions in the mechanism of capital accumulation.
Yet, in many developing economies the fiscal situation in the present day is one of multiple tax and overlapping levies by various tiers of government and regulatory bodies. Takyi (2024) asserted that in such cases, the same income base was taxed twice, thereby making the cost of running SMEs to be beyond their means. Further, Ramzani et al. (2024) reported that the fragmented tax structures lowered the liquidity of businesses, constrained internal capital retention and also limit the capacity of businesses to satisfy the formal lending criteria. In a nutshell, this is a conflict between what tax systems are supposed to achieve in terms of fiscal efficiency and what reality is for entrepreneurs who are squarely trapped by a myriad of obligations that constantly drain their finances. This results in a reduced ability of the SMEs to save enough money for growth, innovation and meeting the demands of financial institutions.
Despite the vital role of SMEs in the local economy and employment creation, SMEs in Maiduguri Metropolis have continued to be faced with limited access to finance. Ongayi et al., (2021) and Jain (2025) had pointed out that financial institutions (FI) are known to rely on profitability indicators, liquidity strength and stable cash flows when evaluating credit, and many SMEs are unable to meet these criteria when there is heavy fiscal pressure. Agbenyo et al. (2025) and Koziol et al. (2025) also had shown that a low internal revenue retention as a result of high taxation and levies affect the creditworthiness and borrowing power of firms. The existing knowledge gap is that there is very little empirical evidence that directly connects the multiple taxation regimes and levy structures to entrepreneurs' access to finance in the context of the Maiduguri Metropolis. This study thus seeks to fill this gap by looking at the impact of overlapping fiscal functions on SMEs financial accessibility with the aim of drawing insights that could help develop a more coherent tax administration policy and enhance the financing of SMEs.
1.3 Objectives of the Study
The study's main goal is to examine the effect of multiple taxation and levies on entrepreneurs' access to finance: evidence from SMEs in Maiduguri Metropolis. The study specifically attempted to: 
1.Examine the effect of multiple taxation on SMEs' ability to obtain bank loans in Maiduguri.
2.Assess the effect of multiple levies on SMEs' access to microfinance and other formal credit facilities in Maiduguri.
3.Determine the effect of tax compliance costs on entrepreneurs' access to finance among SMEs in Maiduguri.
4.Examine the effect of the tax burden on the financial capacity of SMEs to secure external financing in Maiduguri.
OTHER PARTS OF CHAPTER ONE INCLUDE:
1.4 Research Questions: 
1.5 Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study 
1.8 Limitations of the Study 
1.9 Operational Definition of Terms: 

CHAPTER TWO
REVIEW OF LITERATURE (Preview)
This chapter critically examines relevant literature that would assist in explaining the research problem and, furthermore, recognizes the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps. This chapter, therefore, focuses on the concept of multiple taxation, the concept of entrepreneurs' access to finance, prevalence and causes of multiple taxation, sources of finance available to SMEs, and the effect of multiple taxation and levies on entrepreneurs' access to finance etc. The chapter is sub-grouped into the following major headings:
2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review
2.4 Summary of Literature Review

CHAPTER THREE
RESEARCH METHODOLOGY (Preview)
Presented below is a snapshot of key areas of the study methodology, the full and detail chapter three methodology is contained in the instant download document.

Research Design: The study adopted a descriptive survey research design.
Population of the Study: The population of the study comprises all registered Small and Medium Enterprises (SMEs) operating within Maiduguri Metropolis, Borno State, Nigeria, with a total population of registered SMEs.
Sample Size Determination: The study adopted the Taro Yamane formula to determine a sample size of 374 participants.
Sampling Technique: The study employed stratified and purposive sampling techniques to select the individual respondents.
Methods of Data Analysis: The collected data were analyzed using frequencies, percentages, means, and standard deviations to summarize and present the demographic characteristics of the respondents and their responses. Inferential statistics, such as Multiple Regression Analysis, were used to test the hypotheses.
Full outline for chapter three:
3.1 Study Area
3.2 Research Design
3.3 Population of the Study
3.4 Sample Size and Sampling Techniques
3.5 Sources of Data
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Validity and Reliability
3.9 Model Specification

CHAPTER FOUR; DATA PRESENTATION AND ANALYSIS
MAJOR FINDINGS (Preview)
The analysis results were presented in tables. Based on the results obtained from the analysis, the following findings are made: 

i. The study found that multiple taxation negatively affects SMEs' ability to obtain bank loans in Maiduguri Metropolis, as evidenced by a grand mean of 3.78, which is above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a regression coefficient (β) of 0.294, t-value of 5.302, and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis.

ii. The study found that multiple levies negatively influence SMEs' access to microfinance and other formal credit facilities in Maiduguri Metropolis, as evidenced by a grand mean of 3.79, which is above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a regression coefficient (β) of 0.247, t-value of 4.720, and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis.

iii. The study found that tax compliance costs negatively affect entrepreneurs' access to finance among SMEs in Maiduguri Metropolis, as evidenced by a grand mean of 3.79, which is above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a regression coefficient (β) of 0.215, t-value of 4.191, and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis.

iv. The study found that tax burden negatively influences the financial capacity of SMEs to secure external financing in Maiduguri Metropolis, as evidenced by a grand mean of 3.80, which is above the acceptance benchmark of 3.00. The corresponding hypothesis test further showed a regression coefficient (β) of 0.326, t-value of 5.500, and p-value of 0.000 (p < 0.05), leading to the rejection of the null hypothesis.

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
This chapter covers the following outline:
5.1 Summary of the Study
5.2 Conclusion
5.3 Recommendations
5.4 Contribution to Knowledge
5.5 Suggestions for Further Studies
Reference
Appendix

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