A Legal Appraisal of Tax Incentives in the Development of Manufacturing Industries in Nigeria: Lessons from the United States of America

Abstract

Reduction in tax liabilities also referred to as tax incentives, are schemes put in place by many nations to incite and
stimulate economic activities, growth and development. This research provides a legal appraisal of tax incentives in
the development of manufacturing industries in Nigeria, citing some lessons from the practice in the United States of
America. The research analyzes the various types of tax incentives available to manufacturing industries in Nigeria
such as tax credits, tax holidays, investment allowances etc. It assesses the challenges and impact of these tax
incentives, including increased foreign investment, job creation, economic growth etc. The Research employs
doctrinal research methodology and the approaches include expository, narrative and descriptive. Findings reveal
among other things that the challenges to tax incentives in the manufacturing industries in Nigeria includes but not
limited to: revenue loss, unequal distribution of benefits, lack of awareness, and potential abuse. The research
contributes to the ongoing debate on the role of tax incentives in promoting economic development in Nigeria and
provides insights for policy makers, legal practitioners and stakeholders in the manufacturing sector.