IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 1. Ser. II (January. 2020), PP 28-35 www.iosrjournals.org DOI: 10.9790/487X-2201022835 www.iosrjournals.org 28 | Page Inadequate Awareness of National Tax Policy and Its Effect on Non-Regulated Sector of Nigeria Economy (A Study of Small & Medium Enterprises and Traders in Ado- Odo/Ota Local Government Area) Akomolafe, Johnson Adewale 1, Odutola, Oluyemi Akanji 2, Adekunle, Dada Surajudeen 3, Olusesi, Hakeem Olalekan 4, Sadiq, Moshood Obasanjo Department of Accounting, School of Business & Management Studies, Ogun State Institute of Technology, Igbesa, Ogun State Department of Accounting, School of Business & Management Studies, Ogun State Institute of Technology, Igbesa, Ogun State Department of Accounting, School of Business & Management Studies, Ogun State Institute of Technology, Igbesa, Ogun State Department of Accounting, School of Business & Management Studies, Ogun State Institute of Technology, Igbesa, Ogun State Department of Taxation, School of Business & Management Studies, Ogun State Institute of Technology, Igbesa, Ogun State Corresponding Author: Akomolafe Abstract: The study examined the effects of inadequate awareness of the newly approved National Tax Policy on the performance and profitability of Small and Medium Enterprises in Nigeria. The objectives of this study are to review the level of awareness of existing and newly introduced National Tax Policy (NTP) in the specified area of Nigeria economy especially, non-regulated sector of the economy. The research method adopted for the purpose of this research is explanatory and ex-post-facto which has to do with review of existence literature in relation to National Tax Policy Awareness and its effect on Nigeria economy. The research revealed an Inadequate Awareness of National Tax Policy and its Effect on Non-Regulated Sector of Nigeria Economy and the researcher was able to establish that level of awareness of national tax policy has significant effect on the contribution of non-regulated sector into the economy of Nigeria. The researcher recommended that adequate and uninterrupted advert of National Tax Policy is needed, for the effectiveness national tax policy in non- regulated sector of the economy in order boost the income generated from this sector of the economy. Key Words: Non-Regulated Sector, Inadequate Awareness, National Tax Policy, Small & Medium Enterprise, Nigeria Economy --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 30-12-2019 Date of Acceptance: 14-01-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction The federal republic of Nigeria lately was committed to diversifying the sources of government revenues by significantly increasing tax to Gross Domestic Product (GDP) ratio, among other things. The attainment of this laudable objective will require an overhaul of our tax policy which is a key function of the Ministry of Finance. On this note, the government is concern determined to ensure that right and reliable information and message are disseminated to both local and international investors with national tax policy as the bedrock and viable element to increase taxation. Despite the existence of National Tax Policy (NTP) since 2012, it would appear that most of the key stakeholders are not sufficiently aware of its provisions resulting in non-implementation especially in Nigeria tertiary institutions which should have served as the platform of awareness and inculcating taxation habit into the citizens. To address this inherent and identified problem, The Federal Ministry of Finance inaugurated a Committee on the 10th of August, 2016 to review the existed National Tax Policy (NTP) and recommend workable implementation strategies. The outcome of the report of the committee led to the revision of the National Tax Policy with clear implementation and monitoring strategies for stakeholders in the Nigeria tax system.