ABSTRACT

This study examined tax incentives, a catalyst for industrial development in Nigeria. Specifically, it evaluated the impact of tax holidays on industrial development in Nigeria,      it examined the influence of investment allowance on industrial development in Nigeria, the role of reduced tax rates on industrial development in Nigeria; and the influence of VAT incentives on industrial development in Nigeria. The study utilised the survey research design, using questionnaires distributed to two hundred (200) respondents made up of six manufacturing industry in Benin City, Edo state. Thedescriptive statistics, correlation and regression analyses were utilised in the study, and the result showed that tax holidays have no significant impact on industrial development in Nigeria, that investment allowance does not significantly influence industrial development in Nigeria. However, it was found that reduced tax rates play a significant role in enhancing industrial development in Nigeria, and that there is a significant influence between VAT incentives and industrial development in Nigeria. In conclusion, the study provided evidence that tax incentives can play a crucial role in promoting industrial development in Nigeria, and therefore recommended, among others, that the government should establish a monitoring and evaluation framework to assess the effectiveness of tax incentives in promoting industrial development.