EFFECT OF TAX INCENTIVES ON FOREIGN INVESTMENT INFLOWS IN NIGERIA

Abstract

This article studied the effect of tax incentives on foreign investment inflows in Nigeria. In recent years, Nigeria has faced undue challenges to attract foreign investment due to many factors that work against the business environment for foreign investments. The study employed the historical research design to review the literature on foreign investment inflows in Nigeria. The research finds out that even with the so many tax incentives such as tax concessions, tax holidays, withholding tax, etc available, their impart to attract foreign investment remained generally non-significant. This situation is attributable to the several factors such as the activities of Boko Haram, kidnapping, Herdsmen, corruption, etc. that has played against business environment for foreign investment in Nigeria. The study recommended that tax incentives should be properly streamlined to deal with government policy lapses. Otherwise, government main goals of eradicating poverty, sustainable growth and development might not be realizable.