The concept of taxation sharp momentum after the great would of economic depression of 1930’s. After the depression aimed at raising enough capital to provide for social overhead expenses and at the same time embarking on several ways to lift the standard of living of their citizens. In Nigeria, there are many forms of taxations in practice dating back to the days of our great grand fathers, that is before the coming of our colonial masters, whereby communities tax themselves through labour to execute community projects or to help the community suppress external attack or aggression. Therefore, taxation can be referred to as machinery by which communities or groups are made to contribute part of their incomes in some agreed amount and method for the purpose of administering the society. This accounts for the reasons why taxation is often referred as civic responsibility. The present tax laws in Nigeria was borne out of the Raisman’s fiscal commission of inquiry of 1957.

Before them, we only had what was called the income tax colonies with similar providing section 70, subsection 1 of the Nigeria constitution, order in council of 1960 which conferred an exchange power upon parliament to make laws for the whole Nigeria or any part of the country with respect to personal income tax. In the exercise of these powers the federal government enacted the income tax management act of 1961 (ITMA) and because Lagos territory was being administrated as a region it enacted the personal income tax (Logos). Act 1961. On April 1961, the income tax management act came into operation and all the existing laws at the regional level had to be amended to bring them into conformity with what the Raisman fiscal commission recommend in 1958, the introduction of uniform basic principle of taxing income of persons other than limited liability companies throughout the country. Oliver Wendell Homlmes, United States Supreme Court judge said, “Taxes are the price we pay for a civilized society”. Nigeria and been an encouragement by the government to attract individuals and corporate bodies to invest in the country. The idea of the research was to assess how the incentives had helped industries grow and how companies had availed themselves of these opportunities.


The study entitled effects of tax incentive in the development of manufacturing industries attempt to determine the way by which some organization or firm especially Emenite Ltd. Emene has utilized huge amounts of money. Nigerian government sacrifice every year by way of tax incentive towards the development of manufacturing industries. Some of the problems, which they encounter, are as follows. Liability of the tax incentives scheme to redirect the investment patterns of individuals and corporate bodies towards the development of manufacturing industries. The level in efficiency in administering tax incentives scheme has made it impossible using it to attract foreign investors to the manufacturing industries. Liability to use tax incentives in generating employment in manufacturing industries. Most manufacturing industries are unable to apply tax incentives in a flexible manner.


The purpose this study is as follows: To ascertain the extent tax incentives have redirect investment of individuals and corporate bodies towards the development of manufacturing industries. To establish how inefficiency in administering tax incentive scheme has made it impossible using it to attract foreign investors to manufacturing industries. To ascertain the extent by which most manufacturing industries are unable to apply tax incentive in a flexible manner.