EFFECT OF TAX INCENTIVES ON ECONOMIC GROWTH IN NIGERIA
Nnubia, Innocent Chukwuebuka & Fabian C. Obiora
Department of Accountancy
Chukwuemeka Odumegwu Ojukwu University, Anambra StateEmail: nnubiae@yahoo.com, oniiudochiobiora@gmail.com
ABSTRACT
The study examined the effect of tax incentives on economic growth in Nigeria. The data were drawn for 2007 to 2016 as regards to tax incentives. The main type of data used in this study is secondary; sourced from the CBN Statistical Bulletin. This study applied ex post facto research design. The data collected were analysed using Ordinary Least Square Method. The results show that Annual allowance is positive and has significant impact on economic growth in Nigeria; whereas Investment allowance is negative and has significant impact on economic growth in Nigeria. The study, therefore among others recommends that in order to encourage investment in the manufacturing industry, the policy makers and the government should formulate and enact laws that increase the rate of investment allowance from 15% to 20% on plant and machineries used in manufacturing business.
Keywords: tax incentives, economic growth, Nigeria.
