Tax Planning and Firm Value of Oil and Gas Companies in Nigeria

This study examined the effect of tax planning on the firm value of oil and gas companies listed in 
Nigeria between. Using an ex-post facto research design, data were collected from six companies 
selected based on availability (2019 to 2024), and both descriptive and inferential statistics were 
applied for analysis. The Lagrange Multiplier test was conducted to determine the appropriate 
panel regression model, which guided the testing of the hypotheses. The findings revealed that 
cash effective tax rate had a significant negative effect on firm value (with a coefficient of -0.125 
and a p-value of 0.008), while book-tax difference exerted a significant positive influence (with a 
coefficient of 1.86 × 10^-9 and a p-value of 0.0097), indicating that strategic tax management 
played a crucial role in enhancing market valuation. The study concluded that effective tax 
planning is not only a fiscal management tool but also a strategic mechanism for improving firm 
performance and investor confidence. Based on these findings, the study recommended that 
companies should adopt efficient tax strategies, including optimizing cash tax payments and 
managing book-tax differences, to enhance firm value, and that policymakers and regulators 
should develop clear and supportive tax policies that encourage transparent and responsible tax 
planning