Impact Of Tax Incentives On Industrial And Economic Growth In Nigeria

ABSTRACT

Tax incentives are quintessential fiscal policy designed by core industry driven governmental authorities to empower and attract investors in strategic sectors of the economy. Nigerian government offers a large number of reliefs to the individual and industrialist in the form of allowances and tax exemptions or holiday. This is due to her growing concern for economic growth and sustainable development. This study, thus examines the effect of tax incentives in attracting foreign investment, boosting economic and industrial growth as well as identifying the challenges of the scheme using the primary data (questionnaires) duly showing the opinions of the management bodies of basic manufacturing and service firms. The percentage frequency distribution method, linkert scale and the t-test were used in analyzing the data. The findings reviewed that tax incentives affects economic and industrial growth as well as attract foreign direct investment. It is recommended that the scheme should be maintained, with adequate machineries to. create proper awareness of the scheme and ensure that firms get the incentives.