IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i11p540-554.html
   My bibliography  Save this article

Tax Incentives and Growth of Listed Oil and Gas Companies in Nigeria

Author

Listed:
  • Yinka Mashood Salaudeen

    (Department of Accounting, Faculty of Management Sciences, University of Abuja, Nigeria)

  • Monsurat Olaide Akano

    (Department of Accounting, Faculty of Management Sciences, University of Abuja, Nigeria)

  • Tubosun Najim Oladosu

    (Department of Accounting, Faculty of Management Sciences, University of Abuja, Nigeria)

Abstract

This study examined the effects of tax incentives on business growth of the listed Oil and gas companies in Nigeria. The ex-post facto research design was adopted for this study. The population of this study consists of the 12 listed Oil and gas Companies on the Nigerian Stock Exchange from which samples size of ten (10) firms was considered due to availability of data. The panel secondary data were collected from annual reports of the sampled companies for a 7 year period. In analyzing the data, Generalized Least Squares (GLS) was used. The results revealed that capital allowance has no significant relationship with business growth of the sampled listed oil and gas firms in Nigeria. The results also show that there is positive significant relationship between investment allowance and business growth of listed oil and gas firms in Nigeria. While the findings of the study showed that loss relief has a positive significant relationship with business growth of listed oil and gas firms in Nigeria, it was also disclosed that there is significant relationship between allowable interest and business growth of listed oil and gas companies in Nigeria during the period under review. The study therefore recommended that the Government should lay more emphasis on the role of tax incentives and help firms to understand tax law so as to utilize all the available tax incentives which in turn contribute to the growth of oil and gas businesses in Nigeria. The study also recommends there is need for the downstream sector to employ more loan to save tax and use the tax savings to grow the business.

Suggested Citation

  • Yinka Mashood Salaudeen & Monsurat Olaide Akano & Tubosun Najim Oladosu, 2023. "Tax Incentives and Growth of Listed Oil and Gas Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 540-554, November.
  • Handle: RePEc:bcp:journl:v:7:y:2023:i:11:p:540-554
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-11/540-554.pdf
    Download Restriction: no

    File URL: https://www.rsisinternational.org/journals/ijriss/articles/tax-incentives-and-growth-of-listed-oil-and-gas-companies-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giorgia Maffini & Jing Xing & Michael P. Devereux, 2019. "The Impact of Investment Incentives: Evidence from UK Corporation Tax Returns," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 361-389, August.
    2. Barry W. Poulson & Jules Gordon Kaplan, 2008. "State Income Taxes and Economic Growth," Cato Journal, Cato Journal, Cato Institute, vol. 28(1), pages 53-71, Winter.
    3. Giorgia Maffini & Jing Xing & Michael P Devereux, 2016. "The impact of investment incentives: evidence from UK corporation tax returns," Working Papers 1601, Oxford University Centre for Business Taxation.
    4. Zee, Howell H. & Stotsky, Janet G. & Ley, Eduardo, 2002. "Tax Incentives for Business Investment: A Primer for Policy Makers in Developing Countries," World Development, Elsevier, vol. 30(9), pages 1497-1516, September.
    5. Jacques Morisset, 2003. "Tax Incentives : Using Tax Incentives to Attract Foreign Direct Investment," World Bank Publications - Reports 11325, The World Bank Group.
    6. S. Van Parys & S. James, 2010. "The Effectiveness of Tax Incentives in Attracting FDI: Evidence from the Tourism Sector in the Caribbean," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/675, Ghent University, Faculty of Economics and Business Administration.
    7. Norman Gemmell & Richard Kneller & Danny McGowan & Ismael Sanz, 2012. "Corporate Taxation and Productivity Catch-Up: Evidence from 11 European Countries," Discussion Papers 12/06, University of Nottingham, School of Economics.
    8. Babajide Fowowe, 2013. "Do fiscal incentives promote investment?: empirical evidence from Nigeria," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 17-35, July-Dece.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yongzheng Liu & Jie Mao, 2019. "How Do Tax Incentives Affect Investment and Productivity? Firm-Level Evidence from China," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 261-291, August.
    2. Ligia Alba Melo-Becerra & Héctor Zárate-Solano & Andrés Camilo Gómez-Molina, 2018. "Elasticidad del ingreso corporativo gravable en Colombia," Borradores de Economia 1046, Banco de la Republica de Colombia.
    3. Daniel G. Garrett & Eric Ohrn & Juan Carlos Suárez Serrato, 2020. "Tax Policy and Local Labor Market Behavior," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 83-100, March.
    4. Ligia Alba Melo-Becerra & Javier Ávila Mahecha & Jorge Enrique Ramos-Forero, 2017. "The Effect of Corporate Taxes on Investment: Evidence from the Colombian Firms," IHEID Working Papers 10-2017, Economics Section, The Graduate Institute of International Studies.
    5. Fabien Candau & Jacques Le Cacheux, 2018. "Taming Tax Competition with a European Corporate Income Tax," Revue d'économie politique, Dalloz, vol. 128(4), pages 575-611.
    6. Michael Devereux & Li Liu, 2016. "Stimulating investment through incorporation," Working Papers 1607, Oxford University Centre for Business Taxation.
    7. Hazans, Mihails & Pluta, Anna, 2020. "Tax incentives to encourage corporate investment in Latvia," MPRA Paper 118601, University Library of Munich, Germany.
    8. Zhao Chen & Yuxuan He & Zhikuo Liu & Juan Carlos Suárez Serrato & Daniel Yi Xu, 2021. "The Structure of Business Taxation in China," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 131-177.
    9. Watson Munyanyi & Campion Chiromba, 2015. "Incentivos fiscales y expansión de las inversiones: la industria del turismo en Zimbabue," Revista Ad-Minister, Universidad EAFIT, issue 27, pages 27-51, November.
    10. Garsous, Grégoire & Corderi, David & Velasco, Mercedes, 2015. "Tax Incentives and Job Creation in the Tourism Industry of Brazil," IDB Publications (Working Papers) 7324, Inter-American Development Bank.
    11. Devereux, Michael P. & Maffini, Giorgia & Xing, Jing, 2018. "Corporate tax incentives and capital structure: New evidence from UK firm-level tax returns," Journal of Banking & Finance, Elsevier, vol. 88(C), pages 250-266.
    12. Yang, Yuxiang & Zhang, Hongyong, 2021. "The value-added tax reform and labor market outcomes: Firm-level evidence from China," China Economic Review, Elsevier, vol. 69(C).
    13. Tidiane Kinda, 2018. "The quest for non-resource-based FDI: Do taxes matter?," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 11(1), pages 1-18, January.
    14. Seydou Coulibaly & Abdramane Camara, 2021. "Working Paper 354 - Taxation, Foreign Direct Investment and Spillover Effects in the Mining Sector," Working Paper Series 2480, African Development Bank.
    15. Lerche, Adrian, 2019. "Investment Tax Credits and the Response of Firms," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203526, Verein für Socialpolitik / German Economic Association.
    16. Kari, Seppo, 2017. "The effects of tax-deductible reserves on investment incentives," Working Papers 93, VATT Institute for Economic Research.
    17. Seydou Coulibaly & Abdramane Camara, 2022. "The end of tax incentives in mining? Tax policy and mining foreign direct investment in Africa," African Development Review, African Development Bank, vol. 34(S1), pages 177-194, July.
    18. Bjørnskov, Christian, 2015. "Does economic freedom really kill? On the association between ‘Neoliberal’ policies and homicide rates," European Journal of Political Economy, Elsevier, vol. 37(C), pages 207-219.
    19. Sebastian Eichfelder & Jonathan Hoke, 2020. "Steuerpolitik in der COVID-19-Krise [Tax Policy in the COVID-19 Crisis]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(10), pages 767-773, October.
    20. Patricia Diana , Chermian Eforis, 2022. "The Determinants of Tax Incentive Effectiveness During Covid-19 Pandemic," GATR Journals afr214, Global Academy of Training and Research (GATR) Enterprise.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:11:p:540-554. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.