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Vol. 1 No. 4 (2026): August
Tax Incentives and Industrial Development of Chemical and Allied Product Firms in Nigeria
Abstract
Purpose: This study investigates the effect of tax incentives on the industrial development of Chemical and Allied Product (CAP) firms in the Federal Capital Territory (FCT), Abuja, Nigeria.
Methodology: The study adopted a survey research design, utilizing a structured questionnaire to collect primary data from a random sample of 41 staff members of CAP firms in the FCT. Data analysis was performed using descriptive statistics, Pearson’s correlation, and OLS regression.
Results: The regression model explained 66.2% of the variance in industrial development. The findings reveal that the Export Expansion Grant (EEG) (β = 0.278, p = .003), Capital Allowance (CA) (β = 0.196, p = .049), Tax Holiday Status (THS) (β = 0.184, p = .043), and Import Duty Waiver (IDW) (β = 0.309, p = .001) exert significant positive influences, while the Corporate Income Tax Rate (CITR) has a significant negative impact βa = -0.222, p = .016).
Conclusions: This study concludes that targeted tax incentives are essential levers for enhancing firm performance and industrial transformation.
Limitations: This study focused on staff from Chemical and Allied Products firms, which limits the generalizability of the results.
Contributions: The study has implications for the government and policymakers who are desirous of generating the needed tax-related revenue to drive growth and development, as it highlights the implications of tax and incentives as perceived by the citizenry.
Keywords
Capital Allowance
Chemical and Allied Products
Industrial Development
Nigeria
Tax Incentives
How to Cite
Mazeli, E. N., & Egbunike, C. (2026). Tax Incentives and Industrial Development of Chemical and Allied Product Firms in Nigeria. Advances in Management and Business Studies, 1(4), 261–276. https://doi.org/10.35912/ambus.v1.n4.p261-276.2026
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