Climate change poses significant threats to Nigeria's environment, economic development, and public health, as extreme weather events like floods, droughts, and high temperature become more common and severe. Environmental taxation, has shown to be a successful policy tool for encouraging sustainable practices around the world. Nigeria has also made some efforts on Climate Change, but the use of environmental taxes within this framework is still immature and underutilized. Moreso, despite that small scale businesses account for great proportion of Nigeria's businesses, there is limited empirical research on how their operators view climate change and its relationship to economic mechanisms such as taxation. This study examined the effect of the perception of small business operators on climate change and taxation in Nigeria with a view to assessing the effect of the taxation on such perception. The study adopted descriptive survey design using questionnaire from sample of 203 among small business operators in Nigeria as the population. Inferential statistics was used to analyse the responses. The study found that taxation (measured with small business operators’ perception of revenue generation from environmental taxes, green policy effectiveness and the appropriateness of revenue allocation to green projects) exerted significant effect on the mitigation of climate change impacts in Nigeria based on perception of small businessess in Nigeria. Specifically, results of the individual contribution established that small business operators’ perception of revenue generation from environmental taxes and the appropriateness of revenue allocation to green projects exerted positive significant contribution while, green policy effectiveness had negative effect, contrary to a-priori expectation. The study concludes that taxation exerted significant effect on the mitigation of climate change impacts in Nigeria. Policy implication of the findings were highlighted.

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