Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

ARE TAX INCENTIVES STIMULATING SMEs’ COMPETITIVENESS IN NIGERIA? A CRITICAL EXAMINATION

Description

ARE TAX INCENTIVES STIMULATING SMEs’ COMPETITIVENESS IN NIGERIA? A CRITICAL EXAMINATION

Authors

James Unam Monday

Abstract

A major objective of tax incentives is to stimulate the competitiveness of small and medium-scale enterprises (SMEs) to contribute meaningfully to economic development. However, it appears this objective has not been achieved as many SMEs in Nigeria struggle for their survival. Are the tax incentives given by the government actually meeting the objective? This study therefore investigated the extent of utilisation of various tax incentives by SMEs in Nigeria and examined the impact of these incentives on the competitiveness of SMEs. Data were collected through the administration of structured questionnaire to purposively selected respondents who are knowledgeable in tax incentives. Data collected were subjected to psychometric tests, and were analysed using Pearson correlation analysis and OLS multiple linear regression technique. The results showed that SMEs in Nigeria enjoy tax incentives such as capital allowance, reinvestment allowance, investment tax credit, reduced company income tax, tax holiday, and free trade zones and export incentives to a moderate extent. The study also revealed that tax incentives have fairly stimulated the competitiveness of SMEs in the areas of employment creation, investment opportunities, and production capability amongst others.

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