Value Added Tax and Consumer Behaviour in Southwest, Nigeria

This study examines how the implementation of Value Added Tax (VAT) shapes consumerbehaviour in Southwest Nigeria, with particular attention to companies supplying consumer goodsand services. Building on consumer behaviour theory and taxation impact frameworks, thisresearch uniquely investigates the interplay between VAT policies and purchasing patterns in anemerging market context marked by evolving fiscal regulations. Using an ex-post facto design,data from secondary sources including financial reports of seven publicly listed Nigeriancompanies were analyzed to explore how VAT influences consumer price sensitivity, buyingfrequency, and product selection. Results indicate that VAT significantly alters consumerpurchasing decisions by affecting perceived product affordability and overall consumptionpreferences. These findings suggest that companies must enhance VAT compliance and fostertransparent pricing strategies to sustain consumer confidence and mitigate adverse effects onpurchasing power. Moreover, policymakers are urged to periodically review VAT structures tobalance revenue generation with consumer welfare, ensuring the tax system supports botheconomic growth and equitable consumer outcomes