IMPACT OF INCENTIVE MEASURES ON THE FLOW OF FOREIGN PRIVATE INVESTMENTS THE STUDY OF NIGERIA’S TAX INCENTIVE POLICY MEASURES (2000 – 2009)
Attempts at attracting foreign direct investment in Nigeria have been based on the need to maximise the potential benefits derived from them, and to minimise the negative effects their operations could impose on the country. To this effect, the federal government of Nigeria has over the years, been employing different incentive measures, both fiscal and monetary, for the purposes of attracting investors to develop the economy. How successful have these incentives been? In this study, “Impact Of Incentive Measures On The Flow Of Foreign Private Investments: The Study Of Nigeria’s Tax Incentive Policy Measures (2000– 2009)” the researcher set out achieve four objectives to assess the Nigerian tax environment; to examine the incentive regimes of the federal government of Nigeria; to study the trend of foreign private investment in the country, with the objective of ascertaining its economic impact; and finally, to appraise the effect of the various incentives on foreign private investment in Nigeria. The research found that there are several built-in incentives to attract foreign private investments into Nigeria; that the manufacturing and agricultural sectors were more favoured in the incentive measures; that the incentive measures were able to boost the inflow of foreign direct investments; that this increased inflow however, could not translate to visible improved living standards, nor reduce inflation and the unemployment status of the nation.