THE IMPACT OF TAX INCENTIVE ON ECONOMIC AND INDUSTRIAL DEVELOPMENT IN NIGERIA

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THE IMPACT OF TAX INCENTIVE ON ECONOMIC AND INDUSTRIAL DEVELOPMENT IN NIGERIA

ABSTRACT

This research work on the impact of tax incentive on economic and industrial development in Nigeria was primarily undertaken to evaluate the effectiveness of tax incentives in developing the Nigerian economy, the extent to which individuals and companies have been responding to the incentive scheme, and how these incentives have been stimulating and motivating these bodies on employment opportunities. The researcher also intends to examine how these incentives has helped the existing industries and firms in expanding their areas of operation and to know if the aim of granting these incentives is being achieved by the government and implemented by the beneficiaries. An empirical study using a well-structured questionnaire to assess the relationship that exists between tax incentives, industrial development and economic growth using four different incorporated industries and firms in Port Harcourt, Rivers state having considered the type of incentives offered to them by the government. A total number of seventy-five (75) questionnaires were specifically administered to the top and middle management staff (CEO’s managers and Accountants) of these industries and firms and a total number of (60) sixty were retrieved. The hypothesis formulated were tested using the chi-square (X2) method and it was discovered that the tax incentives granted were inadequate to sustain the desired development for which it was granted. Finally, recommendations were made as regards variables which will enhance tax incentives towards industrial development and economic growth.

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