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THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)


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THE IMPACT OF INDUSTRIALIZATION ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

ABSTRACT

This impact of Task incentives of Economic and industrial development of Enugu state Intends to examine the extent individuals ad companies have been responding to the incentives scheme. How these incentive have been stimulating and motivating these bodies on employment opportunities. The researcher intends to examine also how these incentives have been helping existing industrials and companies in expanding their areas of operations in Enugu ad to know if the expected result of these incentives are achieved by the firms who benefit from these relives. Some of the factors which have motivated the researcher in this study include: weakness of the firm to respond to the desired objective, lack of awareness and the aims for granting the relief in adequacy of incentives to sustain the desired development. In this work, the researcher looked into textbooks journals, articles and administered questionnaires to practicing personalities which include tables were used in analyzing the data collected, it was revolved that more than 50% of the firms and individuals studied are aware of the incentive. A good number of them did not go into production, because of the incentives and more than 50% suggested that more incentives should granted.

CHAPTER ONE

INTRODUCTION

       The mode by which economic and industries can be effectively and efficiently developed have a problem.  As a result, government charges less tax in order to encourage investments and activities in those areas which helps to improve the production capabilities, active economic growth as well as allocation of resources in social desirable manner.

       Tax incentive is the use of government spending and tax policies to influence the level of national income.  Taxation itself is the process or mean by which communities or group are made to contribute part of their income for purpose of administration of the society.

       This measure will encourages new enterprises to spring up.  Thereby reducing profit task which encourages production to curb unemployment.  Government should provide employment opportunities,  to improve our economy.

       The government infrastructure facilities such as roads, water supply, electricity hospital etc more reallocate resources to the public sector charging mix input.  By borrowing rather than taxing, the federal government has a better chance of expanding investment spending which is essential to enlarge our production possibilities and attaining increase in standard of living.

       In order hand, these incentive can be targeted on low income earners. This will normally increase their saving which is necessary for higher investment.

Tax incentive also create employment opportunities people which help to fight depression, inflation thereby increasing distribution of income and wealth.

STATEMENT OF THE PROBLEM

       This impact of tax incentive on economic and industrial development using Enugu state as a case study although there are many advantages got were tax incentives are use for economy and industrial development most task experts, consultants individuals and economic analyst ignored or criticized tax incentives  because of the following.

1.  the impact of incentives are not effective in the economy

2.  The exemption privilege not granted to all firms in an industry which place some companies at a competitive disadvantage

3.  Many management of firms, companies lack awareness of the incentive

4.  The incentive granted are not adequate to the development and growth of industry

5.  Unwillingness of some companies and individuals to claim the incentive.  This is because they do not understand the role.

PURPOSE OF THE STUDY

Tax incentive is a strong fiscal measure or policy which can stimulate investment and savings leading to capital information.  This  capital acquisition can be used productively in economic and industrial development of companies and individual can use them effectively.  In deciding if these incentives can stimulate the companies and individuals to invest in the economy.  One basic fact is this whether the company individual concern decided to go into business because of tax incentives offered.  In this study the researcher intends or  companies, have been responding intend or companies, have been responding to incentive scheme how these incentive have been stimulating and motivating these bodies to establish industries, which will create employment opportunities.

       Moreover,  he researcher intends to examine how these scheme has been helping existing industries and companies in expanding their areas of operation in Enugu

RESEARCH QUESTIONS

1.          Can these tax incentives attract foreign incvestors in Nigeria via – Enugu state?

2.          Are the existing tax incentive adequate for development?

3.          Are those incentives claimable by the companies?

4.          Do these incentive stimulate individuals to establish new enterprises?

5.          Do these tax incentives induce the existing industries in Enugu to pursue vigorous policy expansion.

SIGNIFICANCE OF THE STUDY

       Tax incentive scheme  is an economic policy which exist among many other competing alternatives.  The scheme may be an inducement towards rightful investment, securing proposal on private investors lay behind, it then follows that if the schemes is a pale shadow for pilling stock of profitable that the benefits expected from these incentives should be able to justify the cost.

a.          As a result of creating many industries and subsequent expansion of existing ones, it standard of living of the populace will increased.

b.          Tax  incentives will helps in small scale industries which will subsequent expansion of existing one’s the standard of living of the populance will be increased.

c.           Tax incentive scheme leading to diversification will be also result in increasing Urban and rural development.  It is the intention of the researcher to look into ways and extent the existing tax incentives are being used by entrepreneurs in setting up industries establishment in Enugu State.
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