African Research Review

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Tax Incentives for Industry Synergy in Nigeria: A Pragmatic Proprietary System Advocacy

J Ohaka, PUC Agundu


Tax incentives are quintessential fiscal provisions designed by core industry-driven governmental authorities to attract and empower investors in strategic sectors of the economy. In Nigeria, several booster reliefs are obtainable, but many industrialists show soft spot for investment tax credit (ITC) and re-investment allowance (RIA). This study, thus, examined the potency of these specifications in redefining corporate financial performance, particularly in terms of return on equity (ROE). Using financial (secondary) data obtained from a net sample of 58 firms quoted on the Nigerian Stock Exchange (NSE); the correlation, regression and Z-test analytical results were vividly in the affirmative. Leveraging on the outcomes, therefore, a Tax Incentive – Corporate Profitability Impact Model (TICPIM) is conceptualized and presented herein, to accord meaningful impetus to a pragmatic proprietary system advocacy (PPSA), which is expedient for the Nigerian economy. It is expected that these tax appeals and ideals would conscientiously grow critical industries in nation to greater productive and competitive heights.

Keywords: Industrial investment, Nigerian economy, Tax incentives
AJOL African Journals Online