Small and Medium-Scale Enterprises (SMEs) are the backbone of Nigeria’s economy, accounting for 96% of businesses and 84% of employment, and contributing approximately 48% to the national GDP (Atitebi, 2023). Despite their significant role in economic diversification, job creation, and poverty alleviation, SMEs in Nigeria face critical challenges, particularly regarding taxation policies. These enterprises, characterized by limited financial resources and local market focus, often struggle with high tax rates, complex compliance requirements, and administrative burdens, which severely impact their profitability and growth (Anaeto, 2023). This study aims to examine the influence of taxation policies on the business decisions, investment strategies, and operational growth of SMEs in Nigeria. Utilizing a quantitative research approach, the study will investigate how corporate tax, VAT, and other levies affect SME operations, and explore the perceptions of SME owners/managers regarding the fairness and effectiveness of current tax policies. The findings will provide empirical evidence to aid policymakers in formulating more effective tax regulations, support SME owners in making informed decisions, and contribute to academic discourse on taxation and SME development. Understanding the specific impacts of taxation on SMEs is crucial for fostering a more conducive environment for their growth and ensuring the sustainability of Nigeria’s economic landscape.