IJLTEMAS International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS) IJLTEMAS 2278-2540 IJLTEMAS 6 10.51583/IJLTEMAS.2026.150700001 Public Governance Public Governance Quality and Tax Compliance of SMEs in North-East Nigeria Isyaku Abubakar Gombe State Contributory Healthcare Management Agency (GoHealth) Nigeria Iliya Garba Professor Department of Accounting, Gombe State University Nigeria 15 7 1 14 24 07 2026 29 07 2026 05 08 2026 Public Governance Quality (PGQ) Small and Medium Enterprises (SMEs) Tax compliance Northeast Abstract

The study investigates the relationship between public governance quality (PGQ) indicators and tax compliance among Small and Medium Enterprises (SMEs) in Northeast Nigeria. The research examines six PGQ dimensions government effectiveness, rule of law, control of corruption, political stability, regulatory quality, and voice and accountability as determinants of SMEs’ tax compliance behavior. A quantitative survey design was adopted, with data collected from 140 owner-managers of registered SMEs using cluster sampling. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the data. The findings reveal that government effectiveness, rule of law, and regulatory quality exert a positive and significant influence on SMEs’ tax compliance, while control of corruption and voice and accountability show significant negative relationships. Political stability indicated a positive but statistically insignificant relationship. The results underscore the importance of effective institutions, credible legal systems, and sound regulatory frameworks in enhancing tax compliance among SMEs, suggesting that effective institutions, fair enforcement, and transparent regulations foster compliance, whereas poorly perceived anti-corruption efforts and accountability mechanisms may undermine it. The study recommends strengthening institutional trust, simplifying regulatory frameworks, and ensuring transparent governance practices to enhance SMEs’ voluntary tax compliance and broaden the revenue base for sustainable development.

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