EGBUAGU, HENRY CHIBUIKEM (2026) IMPACT OF TAX POLICY ON FOREIGN DIRECT INVESTMENT IN NIGERIA. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.
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Abstract
This study examined the impact of tax policy on foreign direct investment (FDI) in Nigeria over the period 2010 to 2024. Motivated by the dramatic decline of Nigeria’s FDI inflows from USD 8.8 billion in 2011 to USD 1.1 billion in 2024 despite successive tax reform efforts, the study specified Company Income Tax (CIT), Tax Incentives (TI), and Value-Added Tax (VAT) as independent variables, with net FDI inflows as the dependent variable. Real GDP growth rate and the official exchange rate were included as control variables. Secondary data were sourced from UNCTAD World Investment Reports, Central Bank of Nigeria Statistical Bulletins, Federal Inland Revenue Service Annual Reports, the National Bureau of Statistics, and World Bank World Development Indicators. The study adopted an ex-post facto research design and employed the Autoregressive Distributed Lag (ARDL) Bounds Testing approach to cointegration, following confirmation of mixed I(0)/I(1) integration through Augmented Dickey-Fuller and Phillips-Perron unit root tests. The study concluded that Nigeria’s rising corporate tax burden and growing VAT imposition are significant deterrents to foreign investment, while the existing incentive framework provides only partial and insufficient compensation for fiscal competitiveness gaps. The study recommended a phased CIT rate reduction from 30 to 25 percent, a VAT refund guarantee programme, biennial Finance Act cycles, and rules-based incentive administration as priority reforms to restore Nigeria’s FDI competitiveness.
| Item Type: | Thesis (Other) |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | CHIBUEZE EZE |
| Date Deposited: | 30 Jul 2026 14:30 |
| Last Modified: | 30 Jul 2026 14:30 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/6100 |
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