IMPACT OF INCENTIVE MEASURES ON THE FLOW OF FOREIGN PRIVATE INVESTMENTS

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IMPACT OF INCENTIVE MEASURES ON THE FLOW OF FOREIGN PRIVATE INVESTMENTS

ABSTRACT

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 (1995 – 2005) 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.

TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi

CHAPTER ONE – INTRODUCTION
1.1 Background of Study 1
1.2 Statement of Problem 2
1.3 Objectives of the Study 3
1.4 Hypotheses Formulation 3
1.5 Scope of Study 4
1.6 Limitations of the Study 4
1.7 Significance of the Study 4
1.8 Definitions of Terms 5
References 6

CHAPTER TWO – LITERATURE REVIEW
2.1 Taxation – A Theoretical Overview 7
2.1.1 Objectives of Taxation 7
2.1.2 Principles of Taxation 7
2.1.3 Features of a Good System 9
2.1.4 Classification of Taxes 10
2.1.5 Effects of Taxation 11
2.2 Nigerian Tax System 12
2.2.1 A Historical Overview of Nigerian Taxes 12
2.2.2 Tax Administration 15
2.3 Incentives 17
2.3.1 Administration of Incentives 18
2.4 Foreign Direct Investment 18
2.4.1 Factors that Influences Foreign Direct Investment (FDI) 19
2.4.2 Appraisal of Policies and Incentives for Inflow of FDI 20
References 26
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Research Design 28
3.2 Sources of Data 28
3.3 Methods of Data Collection 29
3.4 Population and Sample Size 29
3.5 Techniques of Data Analysis 29
References 30

CHAPTER FOUR – DATA PRESENTATION, ANALYSIS AND TESTING OF HYPOTHESIS
4.0 Introduction 31
4.1 Data Presentation 31
4.2 Data Analysis 43
4.3 Testing of Hypothesis 52
References 56

CHAPTER FIVE – SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.0 Introduction 57
5.1 Summary of Findings 57
5.2 Conclusion 60
5.3 Recommendations 60
Reference 62
Bibliography 63

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