Utilization of Diversification Strategies in Curbing Post Tax Reform Challenges in Ebonyi State Nigeria

The study examined the utilization of diversification strategies in curbing post tax reform challenges in Ebonyi State Nigeria. It specifically examined the extent to which the use of related and unrelated diversification strategies curbs post tax reform challenges. The study adopted a descriptive survey research design. The population of the study comprised the 697 local and state political officer holders in Ebonyi State. The sample size comprised 254 political office holders in Ebonyi State. The sample size was determined with Taro Yamane formula of sample size determination. Convenience sampling technique was used to take the sample size. The instrument used for data collection was a structured questionnaire. Data was collected through a research assistant in the respondents’ state. 254 copies of questionnaires were administered, and 221 copies were properly completed and retrieved. Data collected was analysed with mean. Analysis of the data collected revealed that related and unrelated diversification strategies are instrumental in curbing post tax reform challenges in Ebonyi State. It was concluded that the application of diversification strategies is a panacea to arresting the plight of revenue loss in a tax regime that favours derivation with the highest percentage of value added tax distribution. Therefore, it was recommended that: government should initiate industrial cluster development by providing resources and infrastructure to support businesses in specific industries to encourage related diversification; and Government should establish investment promotion agencies to attract foreign investment and encourage domestic investment in diverse industries to promote unrelated diversification.