Effect of Company Income Tax on Foreign Direct Investment in Nigeria
Abstract
The main objective of this study was to evaluate the effect of company income tax on foreign direct investment in Nigeria. The design adopted for this study was ex-post-facto; data used for analysis were elicited from Central Bank Statistical Bulletin and Federal Inland Revenue Service Annual Reports. To achieve this objective, a model was formulated based on empirical and theoretical reviews. The model used foreign direct investment inflows in to Nigeria as the dependent variable, while company income tax was used as the independent variable in the model. This study employed the Fully Modified Least Squares (FMOLS) Model to analyze data.The findings elicited from this study revealed that company income tax with p-value of 0.0000 had negative and significant effect on foreign direct investment in Nigeria within the scope of this study From the inferential result, the researchers concluded that company income tax had negative and significant effect on foreign direct investment in Nigeria. From the foregoing, the researcher recommended that government and the appropriate monetary authority review company tax policy by giving out tax incentives and tax reliefs to companies operating within Nigeria in order to encourage them to continue investing in Nigeria.
Keywords
Company Income Tax
Foreign Direct Investment
Central Bank of Nigeria
Fully
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